Gce Model Questions Vol1 2023 Commerce Question 3

Practice essay / theory question 3 from the 2023 Gce Model Questions Vol1 Commerce examination. This question covers Home Trade .

Gce Model Questions Vol1 2023 Commerce Essay / Theory

Topic: Home Trade

Question 3 GCE_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • essay

A young entrepreneur runs a home‑based business producing handcrafted wooden toys. During the last financial year the following information was recorded: - Fixed costs (rent, utilities, salaries) = ₦250,000 per year - Variable cost per toy (materials and labour) = ₦1,200 - Selling price per toy = ₦2,000 - Number of toys sold = 500 units - Opening inventory of finished toys = 80 units - Closing inventory of finished toys = 70 units Using the data above, answer the following:

Question Parts

( a )

Determine the break‑even quantity of toys for the business. State the minimum whole number of toys that must be sold to cover all costs.

( b )

Calculate the gross profit earned from the 500 toys sold.

( c )

Evaluate the inventory turnover ratio for the year and comment briefly on what the figure indicates about the business’s inventory management.

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About This Question

This is Gce Model Questions Vol1 2023 Commerce Question 3. It is one of the essay questions from the 2023 Gce Model Questions Vol1 Commerce examination.

The question covers Home Trade .

View More Gce Model Questions Vol1 2023 Commerce Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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