Neco 2023 Commerce Question 43

Practice objective / multiple choice question 43 from the 2023 Neco Commerce examination.

Neco 2023 Commerce Objective / Multiple Choice Medium Difficulty
Question 43 NECO • 2023 • COMMERCE • objective

A trader imports 5,000 kg of cocoa beans. The world price is US\$2.50 per kg. Shipping costs US\$0.30 per kg. Import duty is \(12\%\) of the CIF value, and insurance is \(0.5\%\) of the CIF value. The trader adds a markup of \(25\%\) on the total landed cost and sells the beans in naira at an exchange rate of ₦460 per US\$. Calculate (a) the selling price per kilogram in naira, and (b) the total profit if all beans are sold.

Answer Options

A. Selling price per kg = ₦1,771.88; Total profit = ₦1,771,875
B. Selling price per kg = ₦1,771.00; Total profit = ₦1,610,000
C. Selling price per kg = ₦1,777.05; Total profit = ₦1,769,050
Correct Answer D. Selling price per kg = ₦1,811.25; Total profit = ₦1,811,250
Correct Answer
D
Correct Option:
Selling price per kg = ₦1,811.25; Total profit = ₦1,811,250

About This Question

This is Neco 2023 Commerce Question 43. It is one of the objective questions from the 2023 Neco Commerce examination.

Difficulty level: Medium .

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