Neco 2023 Commerce Question 6

Practice essay / theory question 6 from the 2023 Neco Commerce examination. This question covers Wholesale Trade, Break‑even analysis, Target profit, Credit policy .

Neco 2023 Commerce Essay / Theory

Topics: Wholesale Trade Break‑even analysis Target profit Credit policy

Question 6 NECO • 2023 • COMMERCE • essay

A wholesaler deals in imported kitchen appliances. The purchase price per unit is ₦2,500 and the selling price per unit is ₦3,200. Fixed operating costs amount to ₦150,000 per month (rent, salaries, utilities). In addition to the purchase price, the wholesaler incurs variable costs of ₦300 per unit for packaging and transportation.

Question Parts

( a )

Define the break‑even point for a wholesale business and write the formula used to calculate the break‑even volume in units.

( b )

Based on the data provided, determine:

( ) The break‑even volume in units.

( ) The sales volume required to achieve a target profit of ₦120,000 for the month.

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About This Question

This is Neco 2023 Commerce Question 6. It is one of the essay questions from the 2023 Neco Commerce examination.

The question covers Wholesale Trade, Break‑even analysis, Target profit, Credit policy .

View More Neco 2023 Commerce Questions More Neco Practice Questions Back to Questions

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