Neco 2022 Commerce Question 44
Practice objective / multiple choice question 44 from the 2022 Neco Commerce examination.
A cocoa exporter plans to ship 800 kg. Let the FOB price be \(p\) dollars per kilogram. Export duty of 4\% is levied on the FOB value and a handling fee of \(\$0.10\) per kilogram is charged. The trader can lock a forward rate of \(\text{₦}415\) per \(\$1\). After conversion, a local tax of 5\% is deducted from the proceeds. The trader requires a net receipt of at least \(\text{₦}1{,}200{,}000\). Determine the minimum FOB price \(p\) (in dollars per kilogram) that meets the target.
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About This Question
This is Neco 2022 Commerce Question 44. It is one of the objective questions from the 2022 Neco Commerce examination.
Difficulty level: Medium .
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