Gce Model Questions Vol1 2024 Commerce Question 41

Practice objective / multiple choice question 41 from the 2024 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2024 Commerce Objective / Multiple Choice Medium Difficulty
Question 41 GCE_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • objective

An exporter in Nigeria wishes to earn a profit of \(20\%\) on the total cost of a shipment that costs ₦2,500,000. The goods are priced in US dollars. The current exchange rate is ₦780 per US$1, but it is expected to rise by \(4\%\) before the payment is received. An export duty of \(5\%\) is levied on the US‑dollar selling price (before conversion). What is the minimum US‑dollar selling price (before duty) that the exporter must quote to achieve the desired profit after the duty and the exchange‑rate change? Give your answer in dollars to two decimal places.

Answer Options

A. 3825.64
B. 4010.00
C. 3930.55
Correct Answer D. 3892.87
Correct Answer
D
Correct Option:
3892.87

About This Question

This is Gce Model Questions Vol1 2024 Commerce Question 41. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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