Gce Model Questions Vol1 2020 Commerce Question 20
Practice objective / multiple choice question 20 from the 2020 Gce Model Questions Vol1 Commerce examination.
An importer in Nigeria needs to purchase 10{,}000 units of a product. Supplier X quotes a price of US\$12 per unit, while Supplier Y quotes \(10\) euros per unit. The prevailing exchange rates are 1 US\$ = \(460\) naira and 1 euro = \(520\) naira. An import tariff of \(5\%\) (ad valorem) is levied on the total CIF value, and a fixed handling fee of \(2{,}000\) naira is charged per shipment (the same for either supplier). Which supplier offers the lower total cost in naira? Show your calculation and give the name of the cheaper supplier.
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About This Question
This is Gce Model Questions Vol1 2020 Commerce Question 20. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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