Neco 2020 Commerce Question 47
Practice objective / multiple choice question 47 from the 2020 Neco Commerce examination.
A wholesaler purchases a product from a supplier. The first 100 units cost \(\text{₦}500\) each. For each additional unit beyond the first 100, the unit cost falls by \(\text{₦}0.5\) per extra unit, but the cost per unit never drops below \(\text{₦}400\). The wholesaler adds a 30% markup on the average cost per unit to set a uniform selling price for all units. Fixed monthly overhead is \(\text{₦}20,000\). What is the smallest number of units the wholesaler must sell in a month to earn a profit of at least \(\text{₦}50,000\)?
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About This Question
This is Neco 2020 Commerce Question 47. It is one of the objective questions from the 2020 Neco Commerce examination.
Difficulty level: Medium .
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