Salesmanship WASSCE (SC), 2017

Question 7

Musa Ventures bought the following items on 2nd March 2015:
                        10 Generator sets at N10,000 each;
                        20 Blender machines at N5,000 each;
                        15 Washing machines at N20,000 each.
                        She was granted 5% trade discount and 4% cash discount if she paid within 7 days.

            Calculate the following:

  • total cost of the product;
  • the trade discount she received;
  • the cash discount she received for paying within 7 days;
  • the amount she paid for the goods.
  • Observation

    Most candidates avoided this question and those that attempted it did poorly.

    The responses expected from candidates are:

     

    7.         Solution

    (a)        Total cost of the product                              Amount

    10 Generator sets at N10,000 each (10 x N10,000)   =         N100,000       
    20 Blender machine at N5,000 (20 x N5,000)            =         N100,000       
    15 Washing machines at N20,000 (15 x N20,000)     =         N300,000       
    N500,000       
     



    (b)        Trade Discount:

                            Trade discount of 5% on N500,000

                                                    5    x  N500,000                      =     N25,000  
    100              1

    (c)        Cash discount
                            Cash discount received                                   =          4% (N500,000 – N25,000)

                            4% of N475,00  =    4    x   N475,000            =          N19,00
    100                1

                (d)       Amount paid for the goods:

    Total cost of the goods                                                                       N500,000     

                            Less:    Trade discount allowed:                     N25,000         
    Cash discount received                       N19,000                         N44,000

                                                                                                                                         N456,000