Gce Model Questions Vol1 2022 Commerce Question 37

Practice objective / multiple choice question 37 from the 2022 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2022 Commerce Objective / Multiple Choice Hard Difficulty
Question 37 GCE_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A company issues a proforma invoice for three items: Item A - 150 units at \(£12\) each (cost \(£8\) per unit), Item B - 80 units at \(£20\) each (cost \(£14\) per unit), Item C - 200 units at \(£5\) each (cost \(£3\) per unit). The invoice allows a trade discount of \(6\%\) on the subtotal, VAT of \(15\%\) is then applied, and a cash discount of \(2\%\) is offered if payment is made within 15 days. The buyer pays on day 10. Calculate (a) the amount payable by the buyer (rounded to two decimal places) and (b) the exporter's profit (rounded to two decimal places).

Answer Options

A. Amount payable: £4,661.27; Profit: £1,600.00
B. Amount payable: £4,500.00; Profit: £1,700.00
C. Amount payable: £4,795.45; Profit: £1,875.45
Correct Answer D. Amount payable: £4,661.27; Profit: £1,741.27
Correct Answer
D
Correct Option:
Amount payable: £4,661.27; Profit: £1,741.27

About This Question

This is Gce Model Questions Vol1 2022 Commerce Question 37. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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