Gce Model Questions Vol1 2023 Commerce Question 25
Practice objective / multiple choice question 25 from the 2023 Gce Model Questions Vol1 Commerce examination.
A wholesaler sells product X at a current price of \(\text{₦}1{,}200\) per unit. Variable cost per unit is \(\text{₦}800\) and fixed costs are \(\text{₦}300{,}000\) per year. Annual sales volume is 2,000 units. The wholesaler is considering a promotional discount of 10 % on the selling price. Market research indicates that for each 1 % discount, sales volume will increase by 5 % of the current volume. Should the wholesaler adopt the discount? If so, calculate the new annual profit.
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About This Question
This is Gce Model Questions Vol1 2023 Commerce Question 25. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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