Neco Model Questions Vol1 2020 Commerce Question 20
Practice objective / multiple choice question 20 from the 2020 Neco Model Questions Vol1 Commerce examination.
A retailer sells a product for \(\text{₦}45{,}000\) per unit. The variable cost per unit consists of a purchase cost of \(\text{₦}30{,}000\) and a sales commission equal to 5% of the selling price. Fixed monthly costs (rent, salaries, utilities) amount to \(\text{₦}120{,}000\). What is the minimum number of units that must be sold each month to achieve a target profit of \(\text{₦}150{,}000\)? Also state the contribution‑margin ratio (as a percentage).
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 20. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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