Neco Model Questions Vol1 2017 Commerce Question 10

Practice objective / multiple choice question 10 from the 2017 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2017 Commerce Objective / Multiple Choice Medium Difficulty
Question 10 NECO_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • objective

An importer plans to bring in 10,000 units of a gadget. The FOB price in USD is \(\$12\) per unit and the exchange rate is \(\text{₦}410\) per USD. Freight costs \(\text{₦}1{,}200\) per unit. A 5% import duty is charged on the CIF value, and a 2% surcharge is applied on the total cost (including duty). (a) Compute the total landed cost per unit in Naira. (b) If the importer wants a 25% profit margin over the landed cost, what should be the selling price per unit in Naira?

Answer Options

A. (a) ₦6,548 per unit (approx); (b) ₦8,185 per unit (approx)
Correct Answer B. (a) ₦6,555 per unit (approx); (b) ₦8,193 per unit (approx)
C. (a) ₦6,426 per unit (approx); (b) ₦8,033 per unit (approx)
D. (a) ₦6,493 per unit (approx); (b) ₦8,116 per unit (approx)
Correct Answer
B
Correct Option:
(a) ₦6,555 per unit (approx); (b) ₦8,193 per unit (approx)

About This Question

This is Neco Model Questions Vol1 2017 Commerce Question 10. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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