Neco Model Questions Vol1 2023 Commerce Question 5

Practice essay / theory question 5 from the 2023 Neco Model Questions Vol1 Commerce examination. This question covers Retail Trade .

Neco Model Questions Vol1 2023 Commerce Essay / Theory

Topic: Retail Trade

Question 5 NECO_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • essay

A retailer sells a single type of electronic gadget. The selling price per unit is ₦12,000. The purchase cost per unit from the supplier is ₦8,000 and the retailer incurs additional variable expenses of ₦500 per unit (packaging, transport, etc.). Fixed operating costs amount to ₦1,200,000 per month.

Question Parts

( a )

Calculate the break‑even point in (i) units and (ii) sales value for the retailer.

( b )

If the retailer wishes to earn a profit of ₦300,000 in the month, determine the required sales (i) in units and (ii) in monetary terms.

( c )

Assume the supplier raises the purchase cost by 10 %. Discuss qualitatively and quantitatively how this change affects the break‑even point.

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About This Question

This is Neco Model Questions Vol1 2023 Commerce Question 5. It is one of the essay questions from the 2023 Neco Model Questions Vol1 Commerce examination.

The question covers Retail Trade .

View More Neco Model Questions Vol1 2023 Commerce Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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