Gce Model Questions Vol1 2020 Commerce Question 3

Practice essay / theory question 3 from the 2020 Gce Model Questions Vol1 Commerce examination. This question covers Home Trade .

Gce Model Questions Vol1 2020 Commerce Essay / Theory
Topic: Home Trade
Question 3 GCE_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • essay

A small retailer in Lagos sells handcrafted wooden bowls. The retailer purchases each bowl from a local artisan at a cost price of ₦1,200. The retailer adds a markup to cover overheads and profit. In the first month, the retailer sold 150 bowls at a selling price of ₦2,000 each, and incurred monthly fixed overheads of ₦30,000.

Question Parts

( a )
Calculate the percentage markup (based on cost price) that the retailer applied to each bowl.
( b )
Determine the total profit earned by the retailer in the first month.
( c )
The retailer is considering increasing the selling price by 10 % but expects sales volume to fall by 15 %. Should the retailer adopt the new price? Show all calculations and justify your answer.

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About This Question

This is Gce Model Questions Vol1 2020 Commerce Question 3. It is one of the essay questions from the 2020 Gce Model Questions Vol1 Commerce examination.

The question covers Home Trade .

View More Gce Model Questions Vol1 2020 Commerce Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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