Neco Model Questions Vol1 2025 Commerce Question 35

Practice objective / multiple choice question 35 from the 2025 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 35 NECO_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

A Nigerian importer plans to import 10,000 units of a product. The FOB price in US dollars is $2.50 per unit and the shipping and insurance cost is $0.30 per unit. The import duty is 15\% ad valorem on the CIF value (cost, insurance, freight). The exchange rate is N460 per US$. A surcharge of 5\% is applied on the total landed cost (CIF + duty). (a) Calculate the total landed cost per unit in Naira, (b) If the importer wants a profit margin of 20\% on the landed cost, what is the minimum selling price per unit in Naira? (Round answers to two decimal places.)

Answer Options

Correct Answer A. Landed cost: 1555.26 Naira; Selling price: 1866.31 Naira
B. Landed cost: 1487.64 Naira; Selling price: 1785.17 Naira
C. Landed cost: 1481.20 Naira; Selling price: 1777.44 Naira
D. Landed cost: 1521.45 Naira; Selling price: 1825.74 Naira
Correct Answer
A
Correct Option:
Landed cost: 1555.26 Naira; Selling price: 1866.31 Naira

About This Question

This is Neco Model Questions Vol1 2025 Commerce Question 35. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

View More Neco Model Questions Vol1 2025 Commerce Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support