Gce Model Questions Vol1 2020 Commerce Question 3
Practice objective / multiple choice question 3 from the 2020 Gce Model Questions Vol1 Commerce examination.
A retailer incurs a variable cost of \( \text{₦}250 \) per unit and fixed monthly costs of \( \text{₦}120{,}000 \). The normal selling price is set by adding a \(40\%\) markup on the variable cost. For orders of \(100\) units or more the retailer gives a bulk discount of \(12\%\) on this selling price (before tax). A sales tax of \(7.5\%\) is applied to the discounted price. The retailer wants to achieve a profit of at least \( \text{₦}50{,}000 \) after tax in a month in which the bulk discount is used. What is the minimum number of units that must be sold that month?
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About This Question
This is Gce Model Questions Vol1 2020 Commerce Question 3. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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