Neco Model Questions Vol1 2020 Commerce Question 6

Practice essay / theory question 6 from the 2020 Neco Model Questions Vol1 Commerce examination. This question covers Wholesale Trade .

Neco Model Questions Vol1 2020 Commerce Essay / Theory

Topic: Wholesale Trade

Question 6 NECO_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • essay

A wholesaler purchases bulk quantities of a product from a manufacturer at a unit cost of ₦1,800. The wholesaler sells the product to retailers and applies a trade discount of 12% on the total invoice amount. In addition, the wholesaler offers a cash discount of 3% to retailers who pay within 10 days of the invoice date.

Question Parts

( a )

For an order of 500 units, calculate the invoice amount after applying the trade discount.

( b )

If the retailer pays within the discount period, determine the amount payable after the 3% cash discount.

( c )

The wholesaler sets a selling price of ₦2,100 per unit (before any cash discount). Compute the gross profit margin expressed as a percentage.

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About This Question

This is Neco Model Questions Vol1 2020 Commerce Question 6. It is one of the essay questions from the 2020 Neco Model Questions Vol1 Commerce examination.

The question covers Wholesale Trade .

View More Neco Model Questions Vol1 2020 Commerce Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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