Neco 2022 Commerce Question 5

Practice essay / theory question 5 from the 2022 Neco Commerce examination. This question covers Retail Trade, Pricing, Discounts, Profit calculation .

Neco 2022 Commerce Essay / Theory
Topics: Retail Trade Pricing Discounts Profit calculation
Question 5 NECO • 2022 • COMMERCE • essay

A retailer purchases a single type of consumer electronic item at a cost price of ₦5,000 per unit.

Question Parts

( a )
If the retailer applies a markup of 30 % on the cost price, determine the marked price per unit.
( b )
A seasonal discount of 15 % is offered on the marked price. Calculate (i) the net selling price per unit after the discount and (ii) the profit earned on each unit.
( c )
The retailer expects to sell 200 units each month at the net price obtained in part (b). (i) Compute the total profit for the month. (ii) To increase the monthly profit by 20 % without altering the cost price or the markup, what discount rate should be applied instead of the 15 % discount? Show your calculation.

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About This Question

This is Neco 2022 Commerce Question 5. It is one of the essay questions from the 2022 Neco Commerce examination.

The question covers Retail Trade, Pricing, Discounts, Profit calculation .

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