Neco Model Questions Vol1 2023 Commerce Question 32
Practice objective / multiple choice question 32 from the 2023 Neco Model Questions Vol1 Commerce examination.
An importer purchases goods with a FOB price of US$\(8{,}500\). If payment is made within 30 days the seller gives a \(12\%\) discount on the FOB price. Freight costs US$\(650\) and insurance is charged at \(0.5\%\) of the sum of the discounted FOB price and freight (i.e., the CIF value before insurance). The importer sells the goods locally for \(\text{₦}9{,}000{,}000\). The exchange rate is \(\text{₦}770\) per US$. A customs duty of \(5\%\) is levied on the CIF value (in Naira) and a sales tax of \(2\%\) is applied to the selling price. Determine the importer's profit in Naira.
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About This Question
This is Neco Model Questions Vol1 2023 Commerce Question 32. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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