Neco 2024 Commerce Question 12

Practice objective / multiple choice question 12 from the 2024 Neco Commerce examination.

Neco 2024 Commerce Objective / Multiple Choice Hard Difficulty
Question 12 NECO • 2024 • COMMERCE • objective

A company has fixed costs of \(150000\) naira per month and a variable cost of \(250\) naira per unit. Currently it sells each unit for \(400\) naira and sells 1200 units per month. Management is considering raising the selling price to \(450\) naira, but expects the sales volume to fall by 15%. Determine which price yields the higher monthly profit and calculate the difference in profit between the two scenarios.

Answer Options

A. Original price yields higher profit; profit difference = ₦24000
Correct Answer B. New price yields higher profit; profit difference = ₦24000
C. New price yields higher profit; profit difference = ₦15000
D. Original price yields higher profit; profit difference = ₦18000
Correct Answer
B
Correct Option:
New price yields higher profit; profit difference = ₦24000

About This Question

This is Neco 2024 Commerce Question 12. It is one of the objective questions from the 2024 Neco Commerce examination.

Difficulty level: Hard .

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