Neco 2017 Commerce Question 6
Practice essay / theory question 6 from the 2017 Neco Commerce examination. This question covers Wholesale Trade .
A wholesaler purchases a batch of 5,000 units of a product at a unit cost of ₦1,200. The supplier offers a trade discount of 5 % on the total invoice if payment is made within 10 days; otherwise the full amount is payable. The wholesaler adds a markup of 40 % to determine the selling price to retailers. Of the total sales in a month, 60 % are cash sales (paid immediately) and the remaining 40 % are credit sales on terms 2 % discount if paid within 30 days, otherwise payable in full after 30 days. Assume that all credit customers take the discount.
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This is Neco 2017 Commerce Question 6. It is one of the essay questions from the 2017 Neco Commerce examination.
The question covers Wholesale Trade .
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