Neco 2023 Commerce Question 50

Practice objective / multiple choice question 50 from the 2023 Neco Commerce examination.

Neco 2023 Commerce Objective / Multiple Choice Hard Difficulty
Question 50 NECO • 2023 • COMMERCE • objective

Company X issues a purchase order and a sales invoice. The invoice amount before any discount or surcharge is calculated as (unit price × quantity) + 12 % VAT. The terms state: if payment is made within 10 days, a 2 % discount on the invoice amount is granted; otherwise a 5 % late‑payment surcharge applies. The buyer pays 10 days early and also receives a cash rebate of \(\text{₦}5{,}000\). The unit price is \(\text{₦}8{,}000\) and the quantity sold is 150 units. Determine the net amount the buyer must pay and the effective discount percentage relative to the original pre‑VAT amount.

Answer Options

A. Net amount payable \(\text{₦}1,311,632\); effective discount ≈ 2.65 %
Correct Answer B. Net amount payable \(\text{₦}1,312,120\); effective discount ≈ 2.66 %
C. Net amount payable \(\text{₦}1,168,120\); effective discount ≈ 2.66 %
D. Net amount payable \(\text{₦}1,317,120\); effective discount ≈ 2.24 %
Correct Answer
B
Correct Option:
Net amount payable \(\text{₦}1,312,120\); effective discount ≈ 2.66 %

About This Question

This is Neco 2023 Commerce Question 50. It is one of the objective questions from the 2023 Neco Commerce examination.

Difficulty level: Hard .

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