Salesmanship WASSCE (SC), 2018

Question 7

Neme Enterprises produced 50 pairs of trousers at N800 each and 70 pieces of shirts at N450 each. The firm sells at 10% mark-up.
Calculate the:

  1. Cost of producing the trousers;
  2. Cost of producing the shirts;
  3. Profit made from sales of trousers;
  4. Profit made from sales of shirts;
  5. Total profit made in the business.

Observation

Few candidates who attempted the question did not follow the arithmetical sequence the question demands.

The responses expected from candidates are:

(a) Total Cost is the overall expenditure incurred in producing a specific quantity of
goods. It is the sum of variable and fixed costs.                         
(b) (i) Quantity of Trousers = 50 pairs
Unit cost of production = N800
Total cost of production = quantity x unit price
= 50 x N800                           
= N40,000                              
(ii) Quantity of shirts              =          70 pieces
Unit cost of production          =          N450
Total cost of production         =          Quantity x unit price
=          70 x N450                                                                                                                               =          N31,500                     
(iii) Profit made on producing trouser at 10%
=          10 x N40,000                                                 
100      1
=          N4000                                                            
(iv) Profit made on shirts at 10%
=          10 x N31,500                                                 
100      1
=          N31,500                                                         
(v) Total profit made on the venture
Profit from trouser =               4000   
Profit from shirts =                 3150   
Total profit =                           7150