Neco 2019 Commerce Question 22

Practice objective / multiple choice question 22 from the 2019 Neco Commerce examination.

Neco 2019 Commerce Objective / Multiple Choice Hard Difficulty
Question 22 NECO • 2019 • COMMERCE • objective

A retailer advertises a "buy one, get 20\% off the second" deal on a washing machine whose marked price is \(\text{₦}120,000\). A consumer buys two machines and pays \(\text{₦}216,000\). The retailer claims the discount was applied only to the second machine. (i) Verify whether the amount paid is consistent with the retailer's claim. (ii) If the retailer's cost price per machine is \(\text{₦}70,000\), calculate the retailer's profit or loss on the transaction. (iii) State whether the retailer's practice complies with the Consumer Protection Act's rule that discounts must be clearly disclosed and not misleading.

Answer Options

Correct Answer A. (i) Consistent; (ii) Profit \(\text{₦}76,000\); (iii) Complies with the Act
B. (i) Consistent; (ii) Profit \(\text{₦}68,000\); (iii) Complies with the Act
C. (i) Inconsistent; (ii) Loss \(\text{₦}4,000\); (iii) Does not comply with the Act
D. (i) Inconsistent; (ii) Profit \(\text{₦}76,000\); (iii) Does not comply with the Act
Correct Answer
A
Correct Option:
(i) Consistent; (ii) Profit \(\text{₦}76,000\); (iii) Complies with the Act

About This Question

This is Neco 2019 Commerce Question 22. It is one of the objective questions from the 2019 Neco Commerce examination.

Difficulty level: Hard .

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