Gce Model Questions Vol1 2023 Commerce Question 14
Practice objective / multiple choice question 14 from the 2023 Gce Model Questions Vol1 Commerce examination.
A company wishes to import 10,000 units of a component. Supplier A quotes US\$4 per unit, payable in dollars. Supplier B quotes €3.5 per unit, payable in euros. The exchange rates are 1 USD = \(\text{₦}380\) and 1 EUR = \(\text{₦}420\). Insurance and freight add a flat \(\text{₦}150\) per unit for both suppliers. An import tariff of 12\% is applied to the CIF value (price + insurance + freight) after conversion to naira. Which supplier offers the lower total cost per unit in naira, and what is that cost (to two decimal places)?
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About This Question
This is Gce Model Questions Vol1 2023 Commerce Question 14. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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