Neco 2017 Commerce Question 5

Practice essay / theory question 5 from the 2017 Neco Commerce examination. This question covers Retail Trade .

Neco 2017 Commerce Essay / Theory

Topic: Retail Trade

Question 5 NECO • 2017 • COMMERCE • essay

A retail shop sells three product categories: A, B and C. The cost price per unit of each category is ₦2,500; ₦1,800; and ₦3,200 respectively. The retailer applies a markup of 30 % on category A, 45 % on category B and 25 % on category C. In a month the shop sells 120 units of A, 200 units of B and 80 units of C.

Question Parts

( a )

Determine the selling price per unit for each category.

( b )

Compute the total revenue earned from the sales of the three categories.

( c )

Calculate the overall gross profit margin (percentage) for the month.

( d )

If the retailer decides to increase the markup on category C by 10 percentage points while keeping other markups unchanged, discuss qualitatively how this will affect (i) the gross profit margin and (ii) the competitiveness of product C.

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About This Question

This is Neco 2017 Commerce Question 5. It is one of the essay questions from the 2017 Neco Commerce examination.

The question covers Retail Trade .

View More Neco 2017 Commerce Questions More Neco Practice Questions Back to Questions

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