Neco 2025 Commerce Question 25

Practice objective / multiple choice question 25 from the 2025 Neco Commerce examination.

Neco 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 25 NECO • 2025 • COMMERCE • objective

A wholesaler purchases a product from a manufacturer at ₦1,200 per unit. Fixed monthly overheads (rent, salaries, utilities) amount to ₦150,000. The wholesaler sells to retailers with a base selling price of ₦1,800 per unit. However, for orders of 500 units or more, the wholesaler offers a 10% discount on the base price. The wholesaler aims to earn a monthly profit of ₦80,000. Assuming the wholesaler expects to sell exactly 500 units in a month, determine the minimum base selling price (before discount) that will allow the target profit, and state whether the discount will be applied.

Answer Options

A. Base price ≈ 1,750.00 ₦; discount applied
B. Base price ≈ 1,800.00 ₦; discount applied
C. Base price ≈ 1,900.00 ₦; discount not applied
Correct Answer D. Base price ≈ 1,844.44 ₦; discount applied
Correct Answer
D
Correct Option:
Base price ≈ 1,844.44 ₦; discount applied

About This Question

This is Neco 2025 Commerce Question 25. It is one of the objective questions from the 2025 Neco Commerce examination.

Difficulty level: Medium .

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