Neco 2025 Commerce Question 5

Practice essay / theory question 5 from the 2025 Neco Commerce examination. This question covers Retail Trade .

Neco 2025 Commerce Essay / Theory

Topic: Retail Trade

Question 5 NECO • 2025 • COMMERCE • essay

A retailer, GreenMart, sells two items: Item X (a mobile phone) and Item Y (a tablet). The cost price per unit of Item X is ₦30,000 and its selling price before any discount is ₦45,000. For Item Y, the cost price per unit is ₦20,000 and the selling price before discount is ₦30,000. The retailer offers a 10 % trade discount on the selling price of both items to customers who purchase at least 5 units of the same item in a single transaction, and an additional 5 % cash discount if payment is made in cash within 7 days.

Question Parts

( a )

Calculate the final cash price per unit for each item when the customer qualifies for both discounts.

( b )

If the retailer’s fixed monthly overhead costs are ₦150,000 and the variable cost per unit is the cost price, determine the number of units of Item X that must be sold at the discounted cash price to break even, assuming no sales of Item Y.

( c )

Discuss two advantages and two disadvantages of offering the above discount policy for the retailer.

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About This Question

This is Neco 2025 Commerce Question 5. It is one of the essay questions from the 2025 Neco Commerce examination.

The question covers Retail Trade .

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