Neco 2025 Commerce Question 17

Practice objective / multiple choice question 17 from the 2025 Neco Commerce examination.

Neco 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 17 NECO • 2025 • COMMERCE • objective

An importer wants to bring \(10{,}000\) kg of cocoa beans into Nigeria. Supplier A quotes a FOB price of \(\$2.50\) per kg and freight‑insurance of \(\$0.30\) per kg. The customs ad‑valorem tariff on cocoa beans is \(5\%\) of the CIF value. The exchange rate is \(\text{₦}460\) per US\$. Supplier B offers a CIF price of \(\$2.90\) per kg, but the duty is a specific charge of \(\text{₦}150\) per kg. A surcharge of \(2\%\) is applied on the total customs duty for both suppliers. Calculate the total landed cost in Naira for each supplier, identify the cheaper supplier, and state the percentage saving of the cheaper supplier relative to the more expensive one.

Answer Options

Correct Answer A. Supplier A total landed cost = ₦13,536,880; Supplier B total landed cost = ₦14,870,000; Cheaper = Supplier A; Saving ≈ 8.96%
B. Supplier A total landed cost = ₦13,536,880; Supplier B total landed cost = ₦14,870,000; Cheaper = Supplier B; Saving ≈ 8.96%
C. Supplier A total landed cost = ₦13,536,880; Supplier B total landed cost = ₦14,870,000; Cheaper = Supplier A; Saving ≈ 9.5%
D. Supplier A total landed cost = ₦13,600,000; Supplier B total landed cost = ₦14,800,000; Cheaper = Supplier A; Saving ≈ 8.11%
Correct Answer
A
Correct Option:
Supplier A total landed cost = ₦13,536,880; Supplier B total landed cost = ₦14,870,000; Cheaper = Supplier A; Saving ≈ 8.96%

About This Question

This is Neco 2025 Commerce Question 17. It is one of the objective questions from the 2025 Neco Commerce examination.

Difficulty level: Medium .

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