Neco 2017 Commerce Question 37

Practice objective / multiple choice question 37 from the 2017 Neco Commerce examination.

Neco 2017 Commerce Objective / Multiple Choice Medium Difficulty
Question 37 NECO • 2017 • COMMERCE • objective

A wholesaler purchases goods at an unknown cost price per unit. He adds a \(30\%\) markup and then gives a \(10\%\) trade discount to retailers. After these two adjustments the listed price to the retailer is ₦1,200 per unit. Retailers who pay within 15 days receive an additional \(2\%\) cash discount, making the effective price ₦1,176 per unit. Determine the wholesaler's original cost price per unit (to the nearest kobo) and the profit margin (percentage) on a cash sale.

Answer Options

Correct Answer A. Cost price ≈ ₦1,025.64 per unit; profit margin ≈ 14.66 %
B. Cost price ≈ ₦1,100.00 per unit; profit margin ≈ 8.33 %
C. Cost price ≈ ₦1,050.00 per unit; profit margin ≈ 12.00 %
D. Cost price ≈ ₦950.00 per unit; profit margin ≈ 23.79 %
Correct Answer
A
Correct Option:
Cost price ≈ ₦1,025.64 per unit; profit margin ≈ 14.66 %

About This Question

This is Neco 2017 Commerce Question 37. It is one of the objective questions from the 2017 Neco Commerce examination.

Difficulty level: Medium .

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

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support