Neco Model Questions Vol1 2022 Commerce Question 4

Practice objective / multiple choice question 4 from the 2022 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2022 Commerce Objective / Multiple Choice Medium Difficulty
Question 4 NECO_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A wholesaler purchases a product at a cost price of \(N80\) per unit. He adds a markup of 25% to set the wholesale price. Retailers are offered a trade discount of 12% on the wholesale price, and a cash discount of 2% if payment is made within 15 days of invoice. Determine the effective price per unit the retailer pays when the cash discount is taken, and compute the wholesaler's profit margin (percentage on cost) on that transaction.

Answer Options

A. Effective price = N85.12 per unit; Profit margin ≈ 7.0%
B. Effective price = N87.60 per unit; Profit margin ≈ 8.5%
Correct Answer C. Effective price = N86.24 per unit; Profit margin ≈ 7.8%
D. Effective price = N84.80 per unit; Profit margin ≈ 6.0%
Correct Answer
C
Correct Option:
Effective price = N86.24 per unit; Profit margin ≈ 7.8%

About This Question

This is Neco Model Questions Vol1 2022 Commerce Question 4. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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