Gce Model Questions Vol1 2020 Commerce Question 1
Practice objective / multiple choice question 1 from the 2020 Gce Model Questions Vol1 Commerce examination.
An exporter in Nigeria has a total local cost of \( \text{₦}1{,}200{,}000 \) for a shipment. The goods are priced FOB at \( \$8{,}000 \). The overseas buyer will pay in euros. The exchange rates are \( €1 = \$1.10 \) and \( \$1 = \text{₦}410 \). The bank charges a commission of \(2\%\) on the euro amount received. Nigerian import duty is \(15\%\) of the FOB value expressed in naira (after conversion). The exporter wishes to earn a profit equal to \(20\%\) of the total cost (including duty and bank commission). What euro amount must the buyer pay so that the exporter meets the desired profit?
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About This Question
This is Gce Model Questions Vol1 2020 Commerce Question 1. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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