Practice waec model questions vol1 commerce 2023 Past Questions

Question 1 View Details

A trader purchases 50 kg of rice at a cost of ₦2,200 per kilogram. He intends to earn a profit of 25 % on his total cost and then adds a sales tax of 5 % on the profit‑inclusive price. What is the final selling price per kilogram (in naira)?

A. 2777.5

B. 2750

C. 2860

Correct D. 2887.5

Correct Answer: D

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Question 2 View Details

A consumer bought a washing machine for ₦120,000 with a 2‑year warranty. After 18 months the machine broke. The seller offered to repair it for ₦15,000, but the consumer prefers a refund. Under the Consumer Protection Act, the consumer may claim a refund equal to the purchase price less depreciation (depreciation is charged at 10 % per year of the original price) plus any out‑of‑pocket expenses. The consumer also incurred a return‑shipping cost of ₦5,000. The refund is to be paid after a delay of 3 months, and interest at 12 % per annum is payable on the refundable amount for the period of delay. What total amount should the consumer claim?

A. 103880

B. 110210

Correct C. 110060

D. 107000

Correct Answer: C

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Question 3 View Details

A company has 5 departments. Any department can send a message directly to any other department (a direct channel). In addition, a message may be sent via exactly one intermediate department (a two‑step route). A distinct communication route is defined by an ordered pair (sender, receiver) for direct channels and by an ordered triple (sender, intermediate, receiver) for two‑step routes. Determine the total number of distinct communication routes that involve at most two steps.

A. 84

B. 92

Correct C. 80

D. 70

Correct Answer: C

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Question 4 View Details

A firm finances its operations through three sources: equity, a long‑term loan, and a short‑term loan. The cost of equity is 12 %. The nominal cost of the long‑term loan is 8 % and the short‑term loan is 10 %. The corporate tax rate is 30 %. The target capital structure is 40 % equity, 35 % long‑term loan and the remainder short‑term loan. Compute the weighted average cost of capital (WACC) for the firm (expressed as a percentage to two decimal places).

A. 8.03

B. 9.12

C. 7.85

Correct D. 8.51

Correct Answer: D

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Question 5 View Details

Three partners A, B and C share the profit of their partnership in the ratio 3 : 2 : 1. If the total profit for the year is ₦800,000 and the profit exceeds ₦500,000, partner A receives an additional 5 % of the total profit and partner B receives an additional 3 % of the total profit. Determine the amount each partner receives.

A. A: ₦415,000; B: ₦275,666.67; C: ₦109,333.33

Correct B. A: ₦408,000; B: ₦269,333.33; C: ₦122,666.67

C. A: ₦400,000; B: ₦266,666.67; C: ₦133,333.33

D. A: ₦420,000; B: ₦274,666.67; C: ₦105,333.33

Correct Answer: B

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Question 6 View Details

A company has an annual demand of 12,000 units for a product. The ordering cost is ₦500 per order. The holding cost is 25% of the unit cost per year. The unit cost is ₦200, but if an order quantity of at least 800 units is placed, the unit cost falls to ₦180. Determine the order quantity that minimises the total annual cost and state the minimum total cost.

A. 800 units; ₦2,190,000

Correct B. 800 units; ₦2,185,500

C. 750 units; ₦2,200,000

D. 850 units; ₦2,170,000

Correct Answer: B

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Question 7 View Details

A customer deposits ₦500,000 in a savings account that pays a nominal annual interest rate of 6% compounded monthly. A maintenance fee of ₦1,200 is deducted at the beginning of each month. What is the account balance after 24 months? (Round to the nearest naira.)

A. 527,450

B. 538,900

C. 531,200

Correct D. 534,574

Correct Answer: D

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Question 8 View Details

A trader purchases 150 units of a product at ₦2,500 each. He sells each unit with a 20% markup on cost, and a sales tax of 5% is added to the selling price. What is the total profit earned after tax?

A. 52,500

Correct B. 97,500

C. 112,500

D. 75,000

Correct Answer: B

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Question 9 View Details

An advertising manager has a budget of ₦8,000,000 for a campaign using TV and radio spots. A TV spot costs ₦50,000 and delivers 1.2 GRPs; a radio spot costs ₦20,000 and delivers 0.5 GRPs. At least 150 GRPs must be achieved, and at least 40% of the total GRPs must come from TV. Determine the number of TV and radio spots that satisfy the constraints while minimising total cost. State the numbers of spots, the total cost and the total GRPs achieved.

A. TV spots = 70, Radio spots = 140; Total cost = ₦6,300,000; Total GRPs = 154

B. TV spots = 55, Radio spots = 170; Total cost = ₦6,150,000; Total GRPs = 151

Correct C. TV spots = 50, Radio spots = 180; Total cost = ₦6,100,000; Total GRPs = 150

D. TV spots = 60, Radio spots = 156; Total cost = ₦6,120,000; Total GRPs = 150

Correct Answer: C

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Question 10 View Details

An advertiser must reach at least 5,000,000 individuals. Two media are available:\n- Media X: each unit (1,000,000 impressions) costs ₦5,000,000 and provides 1,000,000 impressions.\n- Media Y: each unit (800,000 impressions) costs ₦3,200,000 and provides 800,000 impressions.\nAt least 30% of the total impressions must come from Media Y. Determine the integer numbers of units to purchase from each media that meet the reach requirement at minimum total cost. State the units of Media X, units of Media Y, total cost and total impressions.

A. Media X units = 2, Media Y units = 4; Total cost = ₦22,800,000; Total impressions = 5,200,000

B. Media X units = 0, Media Y units = 7; Total cost = ₦22,400,000; Total impressions = 5,600,000

C. Media X units = 3, Media Y units = 3; Total cost = ₦24,600,000; Total impressions = 5,400,000

Correct D. Media X units = 1, Media Y units = 5; Total cost = ₦21,000,000; Total impressions = 5,000,000

Correct Answer: D

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Question 11 View Details

A consumer purchased a television for ₦120,000 with a 2‑year warranty. After 18 months the TV stopped working. The seller promised to repair it but the repair took 3 months, during which the consumer had to rent a similar TV at ₦2,500 per week. In addition, the consumer claims simple interest on the purchase price for the 3‑month period at an annual rate of 12 %. Assuming the seller does not pay for the repair, calculate the total amount the consumer is entitled to receive as compensation.

Correct A. ₦33,600

B. ₦36,100

C. ₦30,000

D. ₦33,000

Correct Answer: A

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Question 12 View Details

A bank offers a 6‑month fixed deposit at a nominal rate of 8 % per annum compounded quarterly. Another bank offers a 6‑month term deposit at simple interest of 7.8 % per annum. If a person deposits ₦50,000 in either bank, which bank will give the larger amount at maturity and what is that amount?

A. Bank A - ₦51,950

B. Bank B - ₦52,020

Correct C. Bank A - ₦52,020

D. Bank B - ₦51,950

Correct Answer: C

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Question 13 View Details

An advertising firm has a budget of ₦200,000 for an online campaign. The cost per thousand impressions (CPM) is ₦5,000. The campaign records a click‑through rate (CTR) of 2.5 % and a conversion rate of 4 % of the clicks. Each conversion yields a profit of ₦8,000 for the client. Determine the net profit earned from the campaign and the return on investment (ROI) expressed as a percentage. Is the ROI greater than 20 %?

A. Net profit ₦100,000; ROI 50 %; ROI > 20 %

Correct B. Net profit ₦120,000; ROI 60 %; ROI > 20 %

C. Net profit ₦80,000; ROI 40 %; ROI > 20 %

D. Net profit ₦130,000; ROI 65 %; ROI > 20 %

Correct Answer: B

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Question 14 View Details

An insurance company estimates the expected annual loss per motor policy to be ₦45,000. To cover administrative expenses and profit, it adds a loading of 25 % to the expected loss. After loading, a tax of 5 % is levied on the premium. Calculate the final premium that a policyholder must pay, rounding to the nearest naira.

A. ₦59,500

B. ₦58,750

Correct C. ₦59,063

D. ₦60,000

Correct Answer: C

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Question 15 View Details

A Nigerian importer buys 10,000 kg of cocoa beans at US$2.50 per kg. The exchange rate is ₦460 per US$. Shipping and insurance cost ₦150,000. Import duty is 5 % of the CIF (cost, insurance, freight) value in naira. After clearing, the importer sells the beans at ₦1,300 per kg. Compute the profit earned on this transaction.

A. ₦1,350,000

Correct B. ₦767,500

C. ₦617,500

D. ₦700,000

Correct Answer: B

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Question 16 View Details

A Nigerian importer purchases 5,000 kg of cocoa beans from Ghana at a FOB price of $2.40 per kg. Freight costs $0.30 per kg and insurance is charged at 0.5% of the FOB‑plus‑freight total. Customs duty is 10% of the CIF value (FOB+Freight+Insurance). The exchange rate is ₦460 per US$. The importer wants a profit margin of 15% on the total landed cost (in Naira). What selling price per kilogram in Naira should he quote to achieve this profit?

A. ₦1,845 per kg

B. ₦1,462 per kg

Correct C. ₦1,579 per kg

D. ₦1,720 per kg

Correct Answer: C

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Question 17 View Details

A retailer buys 200 shirts for a total cost of ₦240,000. He intends to apply a markup of x% on the cost price to set the marked price per shirt. Customers receive a seasonal discount of 12% on the marked price, after which a 5% value‑added tax (VAT) is added. The retailer wants a net profit of ₦30,000 after discount and VAT. What markup percentage x must he use?

A. ≈27.0% markup

Correct B. ≈21.8% markup

C. ≈18.5% markup

D. ≈24.3% markup

Correct Answer: B

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Question 18 View Details

A wholesaler buys electronic gadgets at ₦5,000 each. He offers retailers a discount of 5% on the unit price for orders of 101-300 units and 8% for orders exceeding 300 units. A fixed handling charge of ₦200 is added to each order. The wholesaler aims for an overall profit margin of 12% on his total cost (purchase cost plus handling charge) after the discount is applied. If a retailer orders 350 units, what selling price per unit (after discount) must the wholesaler charge to meet his target profit?

A. ₦5,300 per unit (approx.)

B. ₦5,450 per unit (approx.)

Correct C. ₦5,601 per unit (approx.)

D. ₦5,750 per unit (approx.)

Correct Answer: C

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Question 19 View Details

A transport company charges a flat rate of ₦0.75 per ton‑kilometre. For a contract requiring the movement of 15 tons over 1,200 km, the company incurs a fixed vehicle operating cost of ₦45,000 per trip, fuel cost of ₦0.30 per km per ton carried, and a driver's wage of ₦12,000 per day. The trip takes 3 days. The company wants a profit of 10% on the total cost. What is the minimum total charge the company must quote to the client?

A. ₦100,800

B. ₦90,000

Correct C. ₦95,040

D. ₦87,600

Correct Answer: C

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Question 20 View Details

A logistics firm ships a 10‑ton consignment from Lagos to Accra (800 km) and then from Accra to Nairobi (3,200 km). For each leg, the first 1,000 km are charged at ₦0.60 per ton‑kilometre and any distance beyond 1,000 km at ₦0.45 per ton‑kilometre. A customs clearance fee of ₦8,000 is incurred at Accra, and a handling surcharge of 4% of the total freight charge (before profit) is added at Nairobi. The firm wants a net profit of 15% on the total cost (including all fees and surcharges). What total amount should be billed to the client?

Correct A. ₦33,957

B. ₦33,200

C. ₦32,800

D. ₦34,500

Correct Answer: A

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Question 21 View Details

A policyholder suffers a loss of ₦500,000. The motor insurance policy has a deductible of ₦50,000 and a co‑insurance clause where the insurer pays 80% of the loss after the deductible. The insurer also charges a claim‑handling fee equal to 2% of the amount it pays. What is the net amount the policyholder receives from the insurer?

A. 360000

B. 350000

Correct C. 352800

D. 392000

Correct Answer: C

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Question 22 View Details

Three partners A, B and C start a business with capital contributions of ₦120,000, ₦180,000 and ₦200,000 respectively. They agree that profit will be shared as follows: (i) a fixed salary of ₦30,000 each to A and B (C receives no salary), (ii) interest on capital at 5% per annum paid to each partner, and (iii) the remaining profit divided in the ratio of their capital contributions. If the net profit for the year after expenses is ₦300,000, how much does each partner receive in total?

Correct A. A: 87600, B: 116400, C: 96000

B. A: 122000, B: 168000, C: 10000

C. A: 91800, B: 115200, C: 93000

D. A: 80400, B: 105600, C: 114000

Correct Answer: A

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Question 23 View Details

A manufacturing firm needs ₦5,000,000 for expansion. It can raise the funds through a bank loan (short‑term) at 12% p.a., a debenture issue (long‑term) at 9% p.a., and retained earnings (cost assumed 0%). The firm decides to finance 40% of the requirement by the bank loan, 35% by debentures and the remaining 25% by retained earnings. The bank charges a processing fee of 1% of the loan amount and the debenture issue incurs underwriting costs of 0.5% of the debenture amount. What is the effective overall cost of finance as a percentage of the total funds required? (Give your answer to two decimal places.)

A. 7.85

B. 9.12

C. 10.05

Correct D. 8.53

Correct Answer: D

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Question 24 View Details

The cash book of XYZ Ltd shows a closing balance of ₦850,000 on 30 June 2024. The bank statement for the same date shows a balance of ₦900,000. The following items are noted:\n\n- Deposits in transit: ₦40,000\n- Outstanding checks: ₦128,000\n- Bank service charges of ₦5,000 not recorded in the cash book\n- A cheque issued for ₦20,000 was recorded in the cash book as ₦2,000 (clerical error)\n- A customer's cheque of ₦15,000 was returned unpaid and not yet recorded in the cash book\n\nPrepare the bank reconciliation and state the corrected cash book balance as at 30 June 2024.

A. 808000

Correct B. 812000

C. 817000

D. 820000

Correct Answer: B

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Question 25 View Details

A trader buys 200 units of a product at ₦1,200 each and pays a transport cost of ₦15,000. He sells 180 units at ₦1,500 each and the remaining 20 units at ₦1,400 each. What is his gross profit?

A. 38000

Correct B. 43000

C. 45000

D. 40000

Correct Answer: B

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