Neco Model Questions Vol1 2024 Commerce Question 10

A wholesale trader purchases a batch of 800 units of a product at a total cost of ₦1,200,000. The supplier offers a trade discount of \(6\%\) on the invoice amount if payment is made within 10 days; otherwise the full amount is payable. The trader intends to sell the units at a uniform selling price per unit. He expects a variable selling expense of ₦120 per unit and fixed overheads of ₦80,000 for the month. To achieve a target profit of ₦150,000 for the month, the trader must decide whether to take the early‑payment discount. Determine the minimum selling price per unit (in Naira) the trader should set if he (a) takes the discount, and (b) does not take the discount. Indicate which option yields the lower required selling price. Give your answers to two decimal places.