Neco Model Questions Vol1 2019 Commerce Question 6
Practice objective / multiple choice question 6 from the 2019 Neco Model Questions Vol1 Commerce examination.
An exporter receives a payment of $50,000 for a shipment. The bank deducts a commission of \(2\%\) on the dollar amount and then applies a foreign‑exchange surcharge of \(1.5\%\) on the Naira amount after conversion. The prevailing market exchange rate is ₦410 per $. The exporter's cost of the goods is ₦15,000,000 and he wants a net profit of ₦5,000,000 after all deductions. What is the minimum exchange rate (in Naira per dollar) that must be negotiated to achieve the target profit?
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About This Question
This is Neco Model Questions Vol1 2019 Commerce Question 6. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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