Neco 2019 Commerce Question 30
Practice objective / multiple choice question 30 from the 2019 Neco Commerce examination.
A wholesaler buys a product at \(\text{₦}80\) per unit. He sets a list price \(L\) and offers a trade discount of 12% on the list price to retailers. If a retailer pays cash within 10 days, an additional cash discount of 3% is allowed on the already discounted price. The wholesaler wants a profit margin of 25% on cost after all discounts are taken.\n(a) Find the list price \(L\) (to two decimal places).\n(b) If a retailer pays cash within 10 days, what is the effective profit margin based on the list price (as a percentage, to one decimal place)?
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About This Question
This is Neco 2019 Commerce Question 30. It is one of the objective questions from the 2019 Neco Commerce examination.
Difficulty level: Medium .
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