Neco Model Questions Vol1 2022 Commerce Question 5

Practice essay / theory question 5 from the 2022 Neco Model Questions Vol1 Commerce examination. This question covers Retail Trade, Pricing, Markup, Break‑even analysis, Bundle pricing .

Neco Model Questions Vol1 2022 Commerce Essay / Theory
Topics: Retail Trade Pricing Markup Break‑even analysis Bundle pricing
Question 5 NECO_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • essay

A retail shop sells two types of electronic accessories: headphones and portable chargers. The data for the month are as follows: - Headphones: cost price ₦4,500 per unit, selling price ₦7,200 per unit. - Portable chargers: cost price ₦2,800 per unit, selling price ₦4,500 per unit. - Fixed monthly overhead (rent, salaries, utilities) = ₦150,000. The shop is considering a bundle offer in which each bundle contains one headphone and one portable charger and is sold at the combined selling price of the two items. Answer the following questions.

Question Parts

( a )
Calculate the markup percentage for headphones and for portable chargers.
( b )
If the bundle is sold at the combined selling price of the two items, determine the break‑even number of bundles the shop must sell each month.
( c )
The shop wishes to earn a target profit of ₦120,000 per month from the bundle. How many bundles must be sold to achieve this target?
( d )
Discuss two advantages and two disadvantages of using a bundle pricing strategy for this retailer.

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About This Question

This is Neco Model Questions Vol1 2022 Commerce Question 5. It is one of the essay questions from the 2022 Neco Model Questions Vol1 Commerce examination.

The question covers Retail Trade, Pricing, Markup, Break‑even analysis, Bundle pricing .

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