Neco 2019 Commerce Question 21

Practice objective / multiple choice question 21 from the 2019 Neco Commerce examination.

Neco 2019 Commerce Objective / Multiple Choice Medium Difficulty
Question 21 NECO • 2019 • COMMERCE • objective

An importer wants to bring 5,000\,kg of cocoa beans from Ghana. Supplier\,A quotes GHS\,12 per\,kg, Supplier\,B quotes US$\,0.80 per\,kg. Import duty is \(5\%\) of the CIF value, handling fee is \(2\%\) of the amount after duty. Freight costs US$\,0.10 per\,kg and insurance is \(1\%\) of the FOB value. The exchange rates are \(\text{₦}560\) per US$ and \(\text{₦}0.80\) per GHS. Which supplier gives the lower total cost in Naira? State the cheaper supplier and its total cost (to the nearest kobo).

Answer Options

A. Supplier B; total cost \(\text{₦}2,722,910.40\)
B. Supplier B; total cost \(\text{₦}1,800,000.00\)
Correct Answer C. Supplier A; total cost \(\text{₦}351,802.08\)
D. Supplier A; total cost \(\text{₦}350,000.00\)
Correct Answer
C
Correct Option:
Supplier A; total cost \(\text{₦}351,802.08\)

About This Question

This is Neco 2019 Commerce Question 21. It is one of the objective questions from the 2019 Neco Commerce examination.

Difficulty level: Medium .

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