Neco Model Questions Vol1 2020 Commerce Question 43
Practice objective / multiple choice question 43 from the 2020 Neco Model Questions Vol1 Commerce examination.
A retailer sells a product at \(\text{₦}2,200\) per unit. Fixed monthly costs are \(\text{₦}480,000\) and the variable cost per unit is \(\text{₦}1,200\).\n(a) How many units must be sold each month to earn a profit of \(\text{₦}360,000\)?\n(b) If the retailer reduces the selling price by \(10\%\) and expects a price‑elasticity of demand of \(-1.5\), will the retailer still achieve the same profit? State the required quantity and compare it with the quantity expected from the elasticity, indicating any shortfall.
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 43. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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