Neco 2021 Commerce Question 8
Practice objective / multiple choice question 8 from the 2021 Neco Commerce examination.
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.
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About This Question
This is Neco 2021 Commerce Question 8. It is one of the objective questions from the 2021 Neco Commerce examination.
Difficulty level: Medium .
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