Gce Model Questions Vol1 2022 Commerce Question 48

Practice objective / multiple choice question 48 from the 2022 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2022 Commerce Objective / Multiple Choice Medium Difficulty
Question 48 GCE_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A retailer purchases 500 units of a product at \(£25\) each. Fixed overheads for the month are \(£3\,000\). The retailer wishes to achieve a profit margin of \(30\%\) on total sales. He plans to sell the first 200 units at a promotional discount of \(12\%\) off the regular selling price and the remaining 300 units at the regular price. Determine (a) the regular selling price (before discount) that will meet the profit target, and (b) the total profit earned after all 500 units are sold.

Answer Options

A. Regular price ≈ £44.20 per unit; total profit ≈ £5 912.30.
Correct Answer B. Regular price ≈ £46.53 per unit; total profit ≈ £6 642.86.
C. Regular price ≈ £42.10 per unit; total profit ≈ £5 400.55.
D. Regular price ≈ £48.75 per unit; total profit ≈ £7 150.00.
Correct Answer
B
Correct Option:
Regular price ≈ £46.53 per unit; total profit ≈ £6 642.86.

About This Question

This is Gce Model Questions Vol1 2022 Commerce Question 48. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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