Neco 2021 Agricultural Science Question 24

A farmer plans to grow cassava on \(5\) ha. Expected yield is \(20\) tonnes per ha, giving a total production of \(100\) tonnes. Variable cost is \(₦45,000\) per tonne. Fixed costs are land rent \(₦150,000\), labor \(₦200,000\) and equipment depreciation \(₦80,000\). The farmer can sell cassava at a market price of \(P\) naira per tonne. If payment is made within 30 days the buyer receives a \(5\%\) discount on the total bill, and a sales tax of \(2\%\) is applied to the net amount after discount. What is the minimum market price \(P\) (in naira per tonne) that the farmer must set to achieve a net profit of at least \(₦500,000\) after discount and tax? Give your answer rounded up to the nearest naira.