Gce Model Questions Vol1 2019 Commerce Question 22
Practice objective / multiple choice question 22 from the 2019 Gce Model Questions Vol1 Commerce examination.
A Nigerian exporter sells cocoa beans to a European buyer. The contract price is quoted in euros at €0.45 per kilogram. The current exchange rate is ₦560 per euro. The exporter must pay a 5\% export duty on the value in naira, and the buyer's country imposes a 12\% import tariff on the value in euros. In addition, the exporter incurs a freight cost of ₦30 per kilogram, paid in naira. Determine the minimum selling price per kilogram in naira that the exporter must set to achieve a profit margin of 20\% on the total cost (including duty, freight, and the base cost after conversion). Also compute the effective total cost per kilogram in euros after all tariffs and duties.
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About This Question
This is Gce Model Questions Vol1 2019 Commerce Question 22. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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