Neco 2022 Commerce Question 3

Practice objective / multiple choice question 3 from the 2022 Neco Commerce examination.

Neco 2022 Commerce Objective / Multiple Choice Hard Difficulty
Question 3 NECO • 2022 • COMMERCE • objective

A consumer buys a television that is advertised as "30\% off the marked price". The marked price is calculated as follows: the retailer adds a 20\% profit margin to the cost price and then adds 15\% VAT on the resulting amount. In reality the retailer applied the 30\% discount on the cost price, then added the 20\% profit margin on the original cost price and finally added 15\% VAT on the final amount. The cost price of the television is \(\text{₦}800\). Determine (a) the amount the consumer actually paid, (b) the amount that should have been paid according to the advertisement, (c) the over‑charge, and (d) the penalty, which is twice the over‑charge.

Answer Options

A. Actual price = ₦828.00; Advertised price = ₦560.00; Over‑charge = ₦268.00; Penalty = ₦536.00
Correct Answer B. Actual price = ₦828.00; Advertised price = ₦772.80; Over‑charge = ₦55.20; Penalty = ₦110.40
C. Actual price = ₦828.00; Advertised price = ₦772.80; Over‑charge = ₦55.20; Penalty = ₦165.60
D. Actual price = ₦804.00; Advertised price = ₦772.80; Over‑charge = ₦31.20; Penalty = ₦62.40
Correct Answer
B
Correct Option:
Actual price = ₦828.00; Advertised price = ₦772.80; Over‑charge = ₦55.20; Penalty = ₦110.40

About This Question

This is Neco 2022 Commerce Question 3. It is one of the objective questions from the 2022 Neco Commerce examination.

Difficulty level: Hard .

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