Neco 2017 Commerce Question 39

Practice objective / multiple choice question 39 from the 2017 Neco Commerce examination.

Neco 2017 Commerce Objective / Multiple Choice Medium Difficulty

Question 39 NECO • 2017 • COMMERCE • objective

A retailer sells a product for ₦5,000 per unit. The variable cost per unit (including purchase price and handling) is ₦3,200. Fixed monthly expenses amount to ₦120,000. The retailer wishes to earn a net profit of ₦60,000 each month.\n(a) How many units must be sold each month to achieve the target profit?\n(b) If the average inventory value is ₦240,000, compute the inventory turnover ratio for the month.

A. (a) 100 units; (b) 2.08 times

Correct Answer B. (a) 100 units; (b) 1.33 times

C. (a) 80 units; (b) 1.33 times

D. (a) 120 units; (b) 1.83 times

Correct Answer

Correct Option:

(a) 100 units; (b) 1.33 times

This is Neco 2017 Commerce Question 39. It is one of the objective questions from the 2017 Neco Commerce examination.

Difficulty level: Medium .

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