Salesmanship WASSCE (SC), 2023

Question 3

 

  1. Tion Ltd is a distributor of animal feeds. The company spent N 600,000 to purchase 200 bags of the product and two percent of the cost as delivery charges. After sales, the company made twenty percent profit from the transaction.

  2. Calculate:

    (a)Amount paid as delivery charge per bag;

    (b)Cost price per bag of the product;

    (c)Selling price per bag of the product;
  3. (d)Profit made from the transaction by the company.

Observation

 

(a)Quantity of animal feeds purchased = 200 bags                                          
     Amount spent – N 600,000                                                                         

Delivery charges (2% of N 600,000)                                                                                         
= 2/100 x 600,000 = 12,000                                         
Amount paid as delivery charges per bag of feed =12,000 /200                 
= N 60    

(b)Cost price per bag of the product = cost of the product plus delivery charge 1 mark
      = N 600,000/200 + N 60                                             
                                    = N 3,000 + N60 = N3, 060

(c)Selling price per bag = cost price + profit                                                  
                          Profit = 20% of cost price                                                    
                          20/100 X 3,060 = N 612                                                         
    Selling price per bag of the product = N 3,060 + N 612                                 

= N 3,672                       

(d)Profit made from the transaction
Profit = Selling price (SP) – Cost price (CP)                                            
                                     SP = N 3,672 X 200 = N 734,400                                                   
           CP = N 3,060 X 200 = N 612,000                                                   
                                      
Profits from the entire transaction = N 734,400 – N 612,000                                                                                = N 122,400     
         
            Comments
Question 3 involves incomplete/single entry involving percentages. The aspect required calculation of the percentage on the known figure to find the unknown. Some candidates got to a certain stage of the calculation and gave up as they might have seen the question to be tough which also affected their ability to score good marks.