Neco Model Questions Vol1 2025 Commerce Question 22

Practice objective / multiple choice question 22 from the 2025 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 22 NECO_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

A retailer currently sells a product at a unit selling price of \(\N{2,500}\), with a variable cost per unit of \(\N{1,600}\) and fixed monthly costs of \(\N{300,000}\). He sells 1,500 units each month. He is considering raising the selling price by 5% but expects the sales volume to fall by 10% because of price elasticity. Will the proposed price change increase his monthly profit? If so, what will the new profit be?

Answer Options

A. \\N{1,012,500}
B. \\N{1,150,000}
C. \\N{950,000}
Correct Answer D. \N{1,083,750}
Correct Answer
D
Correct Option:
\N{1,083,750}

About This Question

This is Neco Model Questions Vol1 2025 Commerce Question 22. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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