Gce Model Questions Vol1 2022 Commerce Question 3

Practice essay / theory question 3 from the 2022 Gce Model Questions Vol1 Commerce examination. This question covers Home Trade .

Gce Model Questions Vol1 2022 Commerce Essay / Theory

Topic: Home Trade

Question 3 GCE_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • essay

A small home‑based retailer produces handcrafted wooden toys. The cost of materials and labour for each toy is ₦1,200. The retailer incurs fixed monthly overheads of ₦150,000 (rent, electricity, advertising). The retailer expects to sell 500 toys each month and wishes to earn a profit of ₦200,000 per month.

Question Parts

( a )

Determine the minimum selling price per toy that will enable the retailer to achieve the desired monthly profit.

( b )

If the retailer offers a 10 % discount on the selling price calculated in part (a), compute the new profit and state whether the target profit of ₦200,000 is still met.

( c )

Suggest two non‑price factors the retailer could use to maintain sales volume if the discounted profit falls short of the target.

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About This Question

This is Gce Model Questions Vol1 2022 Commerce Question 3. It is one of the essay questions from the 2022 Gce Model Questions Vol1 Commerce examination.

The question covers Home Trade .

View More Gce Model Questions Vol1 2022 Commerce Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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