Neco Model Questions Vol1 2020 Commerce Question 16
Practice objective / multiple choice question 16 from the 2020 Neco Model Questions Vol1 Commerce examination.
A retailer orders 500 units of a product. The supplier's list price is \(\,\text{₦}12{,}000\) per unit. The retailer receives a trade discount of 12% on the list price, then an additional promotional discount of 5% on the reduced price. If the retailer pays cash within 10 days, a further cash discount of 2% is allowed on the amount after the previous discounts. VAT of 7.5% is then added to the net amount payable. The retailer also incurs freight of \(\text{₦}150{,}000\) and a handling charge equal to 1.2% of the net amount before VAT. Determine the minimum selling price per unit the retailer must set to achieve a profit margin of 20% on the total cost (including all charges and VAT).
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 16. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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