Neco 2023 Commerce Question 36

Practice objective / multiple choice question 36 from the 2023 Neco Commerce examination.

Neco 2023 Commerce Objective / Multiple Choice Medium Difficulty
Question 36 NECO • 2023 • COMMERCE • objective

A wholesaler buys a batch of 500 units of a product. He wants a profit margin of 20% on the whole batch. He marks up each unit by 30% over his cost price, then offers a discount of 12% on the marked price and adds a handling fee of \u00a5 100 per unit. A retailer purchases the units at the price after discount and handling fee and then sells each unit at a profit of 15% over his purchase price. Determine the wholesaler's original cost price per unit and the retailer's selling price per unit.

Answer Options

A. Cost price per unit = 12750\/7 \u00a5 (≈\u00a5 1,821.43); Retailer selling price per unit = 17500\/7 \u00a5 (≈\u00a5 2,500.00)
B. Cost price per unit = 12000\/7 \u00a5 (≈\u00a5 1,714.29); Retailer selling price per unit = 16500\/7 \u00a5 (≈\u00a5 2,357.14)
Correct Answer C. Cost price per unit = 12500/7 \u00a5 (≈\u00a5 1,785.71); Retailer selling price per unit = 17250/7 \u00a5 (≈\u00a5 2,464.29)
D. Cost price per unit = 13000\/7 \u00a5 (≈\u00a5 1,857.14); Retailer selling price per unit = 18000\/7 \u00a5 (≈\u00a5 2,571.43)
Correct Answer
C
Correct Option:
Cost price per unit = 12500/7 \u00a5 (≈\u00a5 1,785.71); Retailer selling price per unit = 17250/7 \u00a5 (≈\u00a5 2,464.29)

About This Question

This is Neco 2023 Commerce Question 36. It is one of the objective questions from the 2023 Neco Commerce examination.

Difficulty level: Medium .

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

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support