Neco Model Questions Vol1 2024 Christian Religious Studies Question 12
Practice objective / multiple choice question 12 from the 2024 Neco Model Questions Vol1 Christian Religious Studies examination.
A Christian business owner currently sells a product for \(\text{₦}12{,}000\) with a production cost of \(\text{₦}8{,}000\) per unit. She can either (i) raise the selling price by 15 % while keeping the cost unchanged, or (ii) reduce the production cost by 10 % through outsourcing while keeping the selling price unchanged.\n\n(a) Compute the profit margin (profit divided by selling price) for each option.\n(b) According to the Christian ethical principles of stewardship and fairness, which option should she adopt, assuming the price increase must not exceed 20 % of the original price? State the preferred option and its profit margin (to two decimal places).
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About This Question
This is Neco Model Questions Vol1 2024 Christian Religious Studies Question 12. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Christian Religious Studies examination.
Difficulty level: Hard .
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