Neco Model Questions Vol1 2023 Commerce Question 25
Practice objective / multiple choice question 25 from the 2023 Neco Model Questions Vol1 Commerce examination.
A retailer buys inventory for N \(500,000\). He marks up the goods by 30 % on cost to set the list price. He then offers a trade discount of 12 % on the list price to a wholesaler and, if the wholesaler pays within 10 days, an additional early‑payment discount of 5 % on the discounted price. After these discounts, a value‑added tax (VAT) of 7.5 % is added to the invoice amount. The retailer's overhead costs for the transaction are N \(45,000\). Assuming the wholesaler takes the early‑payment discount, what is the retailer's net profit on the transaction?
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About This Question
This is Neco Model Questions Vol1 2023 Commerce Question 25. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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