A retailer's cost and selling price for a bag of rice are N10,000 and N14,000 respectively.

What is the retailer's profit per bag of rice if he incurs an additional cost of N500 on each bag of rice?

  • A N3,000
  • B N3,500
  • C N4,000
  • D N4,500
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The correct answer is B. N3,500

The retailer’s profit per bag of rice is calculated by subtracting the total cost from the selling price. The total cost includes the initial cost of the bag of rice and the additional cost incurred on each bag.

So, the total cost per bag of rice is N10,000 (initial cost) + N500 (additional cost) = N10,500.

The profit per bag of rice is therefore N14,000 (selling price) - N10,500 (total cost) = N3,500.

So, the retailer’s profit per bag of rice is B. N3,500.

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