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O-LevelCommerceWholesale tradeOct/Nov 2017Paper 1 Q121 Mark

The diagram shows the costs per litre of producing and selling milk to the consumer. [Diagram showing production and selling costs for milk per litre: farmer produces milk for $0.30, milk is processed for $0.25, warehouse collects and stores milk before selling to local retailers for $0.70, retailers sell to customers for $1.00.] What is the cost of the wholesale function?

A$0.15
B$0.30
C$0.45
D$0.70

✓ Correct Answer

The correct answer is A: $0.15

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Commerce Question

Topic

This multiple-choice question tests Wholesale trade in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Commerce Oct/Nov 2017 examination, Paper 1 Variant 2.

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