Neco Model Questions Vol1 2017 Commerce Question 3

Practice essay / theory question 3 from the 2017 Neco Model Questions Vol1 Commerce examination. This question covers Home Trade, Business Mathematics .

Neco Model Questions Vol1 2017 Commerce Essay / Theory
Topics: Home Trade Business Mathematics
Question 3 NECO_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • essay

A small retailer purchases a single type of consumer good from a wholesaler. The retailer wants to operate profitably while covering his monthly overheads.

Question Parts

( a )
If the purchase price of each unit is ₦800 and the retailer desires a profit margin of 25 % on the cost price, calculate the unit selling price he should charge.
( b )
The retailer incurs fixed monthly overheads of ₦45,000. Using the selling price from part (a), determine the minimum number of units that must be sold each month to break even.
( c )
The wholesaler now offers a 10 % discount on the purchase price. Re‑calculate the unit selling price required to retain the same 25 % profit margin and state the new break‑even quantity.

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About This Question

This is Neco Model Questions Vol1 2017 Commerce Question 3. It is one of the essay questions from the 2017 Neco Model Questions Vol1 Commerce examination.

The question covers Home Trade, Business Mathematics .

View More Neco Model Questions Vol1 2017 Commerce Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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