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WAEC Marketing 2022 Question 19

Question 19

Pricing

Use the following information to answer questions 18 and 19
A retailer's cost and selling price for a bag of rice are ₦10,000 and ₦14,000 respectively.
What is the retailer's profit per bag of rice if he incurs an additional cost of N500 on each bag of rice?

  1. A.₦3,000
  2. B.₦3,500
  3. C.₦4,000
  4. D.₦4,500
Show the answer and explanation

Answer: B (₦3,500)

Explanation

Total cost = ₦10,000 + ₦500 = ₦10,500; profit = ₦14,000 − ₦10,500 = ₦3,500.