Neco 2024 Commerce Question 18

Practice objective / multiple choice question 18 from the 2024 Neco Commerce examination.

Neco 2024 Commerce Objective / Multiple Choice Medium Difficulty
Question 18 NECO • 2024 • COMMERCE • objective

A retailer buys smartphones at ₦80,000 each. He wants a gross profit margin of 25\% on the selling price before tax. VAT of 7.5\% is added to the selling price. Loyal customers receive a 10\% discount on the pre‑VAT price. a) What is the final price paid by a loyal customer? b) What is the retailer's actual profit margin as a percentage of the discounted pre‑VAT price (profit divided by the price after discount but before VAT)?

Answer Options

A. Final price = ₦103,200; actual profit margin ≈ 15.0\%
B. Final price = ₦114,667; actual profit margin ≈ 25.0\%
Correct Answer C. Final price = ₦103,200; actual profit margin ≈ 16.7\%
D. Final price = ₦106,667; actual profit margin ≈ 25.0\%
Correct Answer
C
Correct Option:
Final price = ₦103,200; actual profit margin ≈ 16.7\%

About This Question

This is Neco 2024 Commerce Question 18. It is one of the objective questions from the 2024 Neco Commerce examination.

Difficulty level: Medium .

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