Neco 2020 Commerce Question 11
Practice objective / multiple choice question 11 from the 2020 Neco Commerce examination.
An entrepreneur marks a product at ₦150,000. He offers a trade discount of \(12\%\) on the marked price and, if the buyer pays within 10 days, an additional cash discount of \(5\%\) on the balance. After receiving the cash‑discounted amount he must add VAT of \(7.5\%\) before presenting the invoice to the buyer. He later states that his net profit after all discounts and VAT is exactly \(20\%\) of his original cost price. What was the original cost price of the product (in naira)?
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About This Question
This is Neco 2020 Commerce Question 11. It is one of the objective questions from the 2020 Neco Commerce examination.
Difficulty level: Hard .
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