Waec Model Questions Vol1 2017 Commerce Question 26

Practice objective / multiple choice question 26 from the 2017 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2017 Commerce Objective / Multiple Choice Hard Difficulty
Question 26 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • objective

A consumer bought a television for ₦200,000 with a 3‑year warranty that covers the full purchase price. After 24 months the TV fails. Under the Consumer Protection Act the consumer is entitled to a refund equal to the purchase price minus straight‑line depreciation (depreciation = (purchase price / 36 months) × months used). The retailer instead offers to replace the TV with a new unit of the same model at a 10 % discount, provided the consumer returns the faulty TV. The consumer would also have to pay ₦4,000 for transport of the faulty TV to the service centre and would need to rent a replacement TV for 7 days at ₦3,000 per day. Which option is financially better for the consumer and by how much?

Answer Options

A. Replacement route is better; refund amount ₦66,666.67, total cost of accepting offer ₦205,000, net outlay after refund ₦138,333.33, saving ₦68,333.33.
B. Refund route is better; refund amount ₦66,666.67, total cost of accepting offer ₦200,000, net outlay after refund ₦133,333.33, saving ₦66,666.67.
Correct Answer C. Refund route is better; refund amount ₦66,666.67, total cost of accepting offer ₦205,000, net outlay after refund ₦133,333.33, saving ₦71,666.67.
D. Refund route is better; refund amount ₦70,000.00, total cost of accepting offer ₦205,000, net outlay after refund ₦135,000.00, saving ₦70,000.00.
Correct Answer
C
Correct Option:
Refund route is better; refund amount ₦66,666.67, total cost of accepting offer ₦205,000, net outlay after refund ₦133,333.33, saving ₦71,666.67.

About This Question

This is Waec Model Questions Vol1 2017 Commerce Question 26. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

View More Waec Model Questions Vol1 2017 Commerce Questions More Waec 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