Neco Model Questions Vol1 2017 Commerce Question 37

Practice objective / multiple choice question 37 from the 2017 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2017 Commerce Objective / Multiple Choice Medium Difficulty
Question 37 NECO_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • objective

A retailer buys 200 identical items for a total cost of \(\text{₦}480{,}000\). He intends to apply a markup of \(x\%\) on the cost price to set the selling price per item. A sales tax of 5 % is imposed on the selling price and must be paid by the retailer. It is expected that 10 % of the items will be returned, and the retailer will refund the original selling price (excluding tax) for each returned item. Determine the smallest whole‑number markup percentage \(x\) that will give the retailer a total profit of at least \(\text{₦}120{,}000\) after accounting for tax and returns.

Answer Options

A. 35 %
B. 40 %
C. 30 %
Correct Answer D. 33 %
Correct Answer
D
Correct Option:
33 %

About This Question

This is Neco Model Questions Vol1 2017 Commerce Question 37. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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