Practice neco commerce 2021 Past Questions | Edcrib

Question 1 View Details

Three partners A, B and C invest capital for different periods and receive monthly salaries. Partner A invests $\text{₦}120,000$ for 6 months and receives a salary of $\text{₦}5,000$ per month. Partner B invests $\text{₦}80,000$ for 9 months and receives a salary of $\text{₦}4,000$ per month. Partner C invests $\text{₦}100,000$ for 12 months and receives a salary of $\text{₦}3,000$ per month. After paying all salaries, the partnership reports a net profit of $\text{₦}210,000$. Assuming profit is shared in proportion to each partner's capital multiplied by the time (in months) the capital was employed, what is the amount of profit that Partner C receives? Express your answer in naira to the nearest naira.

Correct A. ₦95,455

B. ₦93,333

C. ₦70,000

D. ₦95,454

Correct Answer: A

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Question 2 View Details

An advertiser plans a 5‑week campaign using two media: TV and radio. A TV spot costs $\text{₦}150,000$ per week and reaches 200,000 viewers each week with an average frequency of 2. A radio spot costs $\text{₦}80,000$ per week and reaches 120,000 listeners each week with an average frequency of 3. The target market size is 500,000. The advertiser has a total budget of $\text{₦}1,200,000$ and wants to achieve at least 300 Gross Rating Points (GRP). Determine the combination of TV weeks (x) and radio weeks (y) that meets the GRP requirement at the minimum possible cost without exceeding the budget, and state the minimum total cost in naira.

A. ₦480,000

Correct B. ₦400,000

C. ₦360,000

D. ₦440,000

Correct Answer: B

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Question 3 View Details

A wholesaler purchases goods at a cost price of $c$ naira per unit. He marks up the price by 30\% and offers a 5\% discount on the marked‑up price for orders exceeding 100 units. His fixed monthly overhead is $\text{₦}50,000$. In a month he sells 120 units. If he wants to earn a net profit of at least $\text{₦}20,000$ for the month, what is the minimum selling price per unit (before the discount) he must set? Give your answer in naira rounded to the nearest naira.

A. ₦3,150

Correct B. ₦3,228

C. ₦3,300

D. ₦3,250

Correct Answer: B

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Question 4 View Details

An importer brings goods with a CIF value of $\text{₦}500,000$. Customs duty is charged at 5\% of the CIF value, a surcharge of 2\% of the CIF value is also levied, and Value‑Added Tax (VAT) of 7.5\% is charged on the sum of the CIF value, duty and surcharge. Calculate the total amount payable in naira.

A. ₦574,375

B. ₦572,500

C. ₦564,913

Correct D. ₦575,125

Correct Answer: D

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Question 5 View Details

A customer deposits $\text{₦}200,000$ in a savings account that pays 6\% per annum compounded quarterly. After 2 years the bank changes the rate to 5\% per annum compounded quarterly for the next 3 years. At the end of the 5‑year period the customer withdraws the whole balance but incurs a penalty of 1\% of the balance at withdrawal. Determine the amount the customer receives after the penalty, rounded to the nearest naira.

A. ₦260,000

B. ₦257,309

C. ₦255,310

Correct D. ₦258,898

Correct Answer: D

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Question 6 View Details

A consumer purchases a television for $₦120,000$. The warranty covers repair costs but the consumer must pay a $20\%$ service charge on any repair. After 8 months the TV fails and the repair bill is $₦15,000$. The consumer pays the service charge and the repair is completed. Six months later the TV fails again. The seller's refund policy states that if a product fails twice within the warranty period, the refund equals the purchase price minus all amounts the consumer has paid for repairs and service charges, and then a $5\%$ loyalty discount is added to the remaining amount. Calculate the amount of refund the consumer will receive.

A. 102000

B. 108000

Correct C. 107100

D. 122850

Correct Answer: C

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Question 7 View Details

A small business uses two mobile‑phone communication plans.\n\nPlan A: fixed monthly fee of $₦5,000$ plus $₦20$ for each minute of call.\n\nPlan B: fixed fee of $₦8,000$, the first 200 minutes are charged at $₦15$ per minute and each additional minute at $₦10$.\n\nBoth plans charge $₦5$ per text message.\n\nIn a particular month the business makes $350$ minutes of calls and sends $120$ texts.\n\n(a) Which plan results in the lower total monthly cost and by how much?\n(b) Ignoring texts, determine the smallest number of call minutes for which the two plans would cost the same.

A. Plan A cheaper by ₦1000; break‑even at 350 minutes

B. Plan B cheaper by ₦500; break‑even at 380 minutes

C. Plan B cheaper by ₦200; break‑even at 420 minutes

Correct D. Plan A cheaper by ₦500; break‑even at 400 minutes

Correct Answer: D

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Question 8 View Details

A retailer buys 120 units of a product at a unit cost of $₦8,500$. He receives a trade discount of 12\% on the total invoice and, if he pays cash within 10 days, an additional cash discount of 3\% on the discounted amount. He sells each unit at a marked price of $₦12,000$. Because the customer buys more than 80 units, a volume discount of 10\% is applied to the total selling price. A sales tax of 5\% is then added to the discounted selling price. Assuming the retailer pays cash within the discount period and sells all 120 units in one transaction, calculate the retailer's net profit.

A. 490128

B. 371400

Correct C. 360528

D. 425328

Correct Answer: C

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Question 9 View Details

A trader buys 50\,kg of rice at $₦450$ per kilogram and 30\,kg of beans at $₦600$ per kilogram. He also pays a flat transport fee of $₦5,000$. What is the total amount he pays for the purchase and transport?

Correct A. 45500

B. 40500

C. 44500

D. 46000

Correct Answer: A

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Question 10 View Details

A home‑based baker makes 200 cupcakes. The cost of ingredients per cupcake is $₦250$. He adds a markup of 40\% on the total ingredient cost to set the selling price. What is the selling price per cupcake?

A. 375

Correct B. 350

C. 300

D. 325

Correct Answer: B

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Question 11 View Details

A transport company charges a fixed base fee plus a per kilometre charge. For a $120$ km delivery the total cost is ₦5,400, and for a $200$ km delivery the total cost is ₦8,200. Determine the base fee and the per kilometre charge. Then, if a customer receives a $12\%$ discount on the per kilometre charge for a $150$ km trip, what is the total amount payable?

A. Base fee = ₦1,500; per kilometre charge = ₦35; total payable for 150 km trip = ₦6,750

B. Base fee = ₦1,200; per kilometre charge = ₦30; total payable for 150 km trip = ₦5,700

C. Base fee = ₦1,200; per kilometre charge = ₦35; total payable for 150 km trip = ₦6,450

Correct D. Base fee = ₦1,200; per kilometre charge = ₦35; total payable for 150 km trip = ₦5,820

Correct Answer: D

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Question 12 View Details

Three partners A, B and C invest capital of ₦120,000, ₦180,000 and ₦200,000 respectively for one year. The partnership agreement states that interest on capital at $8\%$ per annum is first paid to each partner, then a fixed salary of ₦30,000 is paid to each partner, and the remaining profit of ₦210,000 is shared in the ratio of their capital contributions. Determine the total amount each partner receives.

A. A receives ₦58,800; B receives ₦73,200; C receives ₦78,000

Correct B. A receives ₦90,000; B receives ₦120,000; C receives ₦130,000

C. A receives ₦60,000; B receives ₦90,000; C receives ₦100,000

D. A receives ₦92,400; B receives ₦123,600; C receives ₦134,000

Correct Answer: B

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Question 13 View Details

A company wants to spend exactly ₦80,000 on advertising using newspaper column‑inches and radio spots. Newspaper charges ₦100 per column‑inch, but a $10\%$ discount is given if the total newspaper cost exceeds ₦20,000. Radio charges ₦2,500 per spot, with a $5\%$ discount if more than 10 spots are bought. Let $x$ be the number of column‑inches and $y$ the number of radio spots purchased. Find the integer values of $x$ and $y$ that satisfy the budget and the discount conditions.

A. x = 120 column‑inches, y = 30 radio spots

Correct B. x = 135 column‑inches, y = 28 radio spots

C. x = 200 column‑inches, y = 20 radio spots

D. x = 140 column‑inches, y = 26 radio spots

Correct Answer: B

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Question 14 View Details

A customer deposits ₦500,000 in a bank account that offers a nominal interest rate of $12\%$ per annum, compounded quarterly. After $18$ months the customer withdraws half of the balance and incurs a penalty of $2\%$ on the withdrawn amount. The remaining balance continues to earn interest at the same rate for another $1.5$ years. Calculate the total amount the customer receives at the final withdrawal (including the amount received after the penalty and the balance after the second interest period).

Correct A. Total amount received ≈ ₦648,983.03

B. Total amount received ≈ ₦660,120.78

C. Total amount received ≈ ₦642,500.00

D. Total amount received ≈ ₦635,210.45

Correct Answer: A

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Question 15 View Details

A trader buys goods for ₦45,000 and sells them for ₦60,000. What is the profit percentage earned on the transaction?

A. Profit percentage = 25 %

B. Profit percentage = 30 %

C. Profit percentage = 40 %

Correct D. Profit percentage = 33.33 %

Correct Answer: D

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Question 16 View Details

Partner A contributed ₦120,000 for the whole year. Partner B contributed ₦90,000 for the whole year but withdrew ₦30,000 after 4 months, after which the reduced amount remained for the rest of the year. Partner C contributed ₦150,000 for the whole year. The partnership earned a total profit of ₦340,000 to be shared in proportion to the average capital each partner had during the year. What amount of profit does Partner B receive?

A. 80000

Correct B. 70000

C. 75000

D. 60000

Correct Answer: B

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Question 17 View Details

An accountant prepared a trial balance that showed total debits of ₦1,250,000 and total credits of ₦1,240,000. Later she discovered that a purchase of ₦30,000 had been recorded on the credit side instead of the debit side, and that a depreciation expense of ₦12,000 had been omitted entirely. The income statement prepared from the trial balance reported a profit of ₦85,000. After correcting both errors, what is the revised profit?

A. 73000

B. 55000

C. 31000

Correct D. 43000

Correct Answer: D

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Question 18 View Details

An advertiser plans a campaign using TV and radio. A TV spot costs ₦150,000 per week, reaches 2,000,000 viewers and is aired with a frequency of 3 per week. A radio spot costs ₦80,000 per week, reaches 1,200,000 listeners and is aired with a frequency of 4 per week. The target is to achieve at least 5,000 gross rating points (GRPs). Assuming the population size is 10,000,000, determine the number of weeks each medium should be run (in whole weeks) to meet the target at minimum total cost, and state that minimum cost.

A. 900000

B. 950000

C. 860000

Correct D. 880000

Correct Answer: D

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Question 19 View Details

A retailer has an annual demand of 12,000 units for a product that costs ₦200 per unit. The ordering cost is ₦5,000 per order and the holding cost is 20 % of the unit cost per year. The supplier's lead time is 10 days, and the warehouse can hold at most 800 units at any time. (Assume 365 days in a year.) Determine the order quantity that satisfies the space constraint and compute the reorder point (in units).

Correct A. Order quantity = 800 units; Reorder point = 329 units

B. Order quantity = 800 units; Reorder point = 333 units

C. Order quantity = 800 units; Reorder point = 394 units

D. Order quantity = 1732 units; Reorder point = 329 units

Correct Answer: A

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Question 20 View Details

A bank offers a loan of ₦500,000 to be repaid in 5 equal annual installments. The nominal annual interest rate is 12 % compounded annually. A processing fee of 2 % of the loan amount is charged upfront and added to the loan balance. Calculate the amount of each annual installment (rounded to the nearest naira).

A. 150000

B. 144000

Correct C. 141200

D. 138000

Correct Answer: C

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Question 21 View Details

An exporter sells 5,000\,kg of cocoa at a world price of $2.40 per kg. The export is subject to a $5\%$ export duty, then a $2\%$ sales tax on the value after duty, and a foreign‑exchange commission of $3\%$ on the proceeds when converting to Naira at an exchange rate of ₦410 per $. The exporter also receives a government rebate equal to $1\%$ of the original FOB value (before any duty). What is the net amount in Naira that the exporter receives after all deductions and the rebate?

Correct A. 4492304.40

B. 4487532.00

C. 4443104.40

D. 4382736.00

Correct Answer: A

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Question 22 View Details

A trader needs to transport 20 tons of rice from Lagos to Kano (distance 900 km). He can use either (a) road transport costing ₦0.45 per ton‑km plus a fixed loading fee of ₦1,200, or (b) rail transport costing ₦0.30 per ton‑km, a transshipment fee of ₦2,500 and a 10\% surcharge on the variable cost when the load exceeds 15 tons. Which mode gives the lower total cost and by how much?

A. 740

Correct B. 860

C. 1120

D. 960

Correct Answer: B

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Question 23 View Details

A firm's capital structure consists of equity of ₦2,000,000 requiring a 12\% return, a bank loan of ₦1,500,000 at 9\% interest (tax‑deductible at 30\%), and trade credit of ₦500,000 with an implicit cost of 15\% (no tax shield). Calculate the firm's weighted average cost of capital (WACC) expressed as a percentage to two decimal places.

Correct A. 10.24%

B. 9.68%

C. 11.12%

D. 12.45%

Correct Answer: A

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Question 24 View Details

An importer purchases electronic gadgets with an invoice of €150,000. A 6\% discount is offered for payment within 30 days and an additional 3\% discount on the already discounted amount for payment within 10 days. After discounts, an import duty of 12\% and a VAT of 5\% (charged on the sum of the discounted invoice and duty) are applied. The exchange rate is €1 = ₦480 and the bank charges a commission of 2\% on the Naira amount converted. If payment is made within 10 days, what is the total Naira outflow (rounded to the nearest Naira)?

A. 77107425

B. 74998103

C. 79564162

Correct D. 78748008

Correct Answer: D

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Question 25 View Details

A retailer buys 200 shirts for a total cost of ₦560,000. He marks each shirt up by 35\% on its cost price and then offers a 10\% discount on the marked price. What profit does the retailer make on each shirt?

A. 980

Correct B. 602

C. 791

D. 476

Correct Answer: B

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