Neco 2018 Commerce Question 25
Practice objective / multiple choice question 25 from the 2018 Neco Commerce examination.
A wholesaler purchases a product at a unit price of \\(₦4,200\\). He receives a bulk trade discount of \\(5\\%\\) on the purchase price and incurs a handling cost of ₦150 per unit. He intends to apply a markup of \\(30\\%\\) on his total cost (after discount and handling) to set the selling price per unit. His monthly fixed overhead is ₦120,000. Determine (a) the selling price per unit, and (b) the minimum number of units that must be sold each month to cover both variable and fixed costs (break‑even quantity). Round the selling price to the nearest naira and the break‑even quantity to the next whole unit.
Answer Options
About This Question
This is Neco 2018 Commerce Question 25. It is one of the objective questions from the 2018 Neco Commerce examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.