Neco Model Questions Vol1 2020 Commerce Question 3
Practice essay / theory question 3 from the 2020 Neco Model Questions Vol1 Commerce examination. This question covers Home Trade .
A young entrepreneur runs a home‑based bakery that produces and sells customised cupcakes. The following information is known for the current financial year: - Fixed costs (rent, utilities, equipment depreciation) amount to ₦1,200,000. - The variable cost per cupcake (ingredients, labour, packaging) is ₦250. - The average selling price per cupcake is ₦500. - The entrepreneur plans to sell 8,000 cupcakes this year. - Corporate tax rate is 30% on profit before tax. - The entrepreneur is considering a 10% increase in the variable cost due to a rise in ingredient prices. Answer the following questions:
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This is Neco Model Questions Vol1 2020 Commerce Question 3. It is one of the essay questions from the 2020 Neco Model Questions Vol1 Commerce examination.
The question covers Home Trade .
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