Neco 2018 Commerce Question 1
Practice objective / multiple choice question 1 from the 2018 Neco Commerce examination.
An exporter in Nigeria has a cost of goods amounting to ₦2,500,000. He wishes to earn a profit of \(20\%\) on this cost. The prevailing exchange rate is \(1\text{ USD}=₦460\). The bank handling the transaction charges a commission of \(1.5\%\) of the USD proceeds plus a fixed fee of ₦5,000. An export duty of \(5\%\) is levied on the FOB value (in Naira). What is the minimum FOB price in US dollars that the exporter must quote to achieve his target profit?
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About This Question
This is Neco 2018 Commerce Question 1. It is one of the objective questions from the 2018 Neco Commerce examination.
Difficulty level: Medium .
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