Gce Model Questions Vol1 2021 Commerce Question 3

Practice essay / theory question 3 from the 2021 Gce Model Questions Vol1 Commerce examination. This question covers Home Trade .

Gce Model Questions Vol1 2021 Commerce Essay / Theory

Topic: Home Trade

Question 3 GCE_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • essay

A home‑based trader purchases 500 units of a handmade ceramic mug at a unit cost of ₦1,200. She sells 300 units at ₦1,800 each and the remaining units at a discounted price. Her monthly fixed costs (rent, electricity, advertising) total ₦120,000 and she incurs a packaging cost of ₦50 per unit sold.

Question Parts

( a )

Determine the discounted price per unit that will allow the trader to achieve a profit of exactly ₦150,000 for the month.

( b )

Using the discount price found in part (a), calculate the break‑even point in units – i.e., the minimum number of discounted units that must be sold in addition to the 300 units already sold at the higher price – for the trader to cover all costs.

( c )

Discuss two non‑financial factors that could influence the trader’s decision to adopt the discount price, and suggest one practical strategy to mitigate each factor.

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About This Question

This is Gce Model Questions Vol1 2021 Commerce Question 3. It is one of the essay questions from the 2021 Gce Model Questions Vol1 Commerce examination.

The question covers Home Trade .

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