O-LevelCommerceWholesale trade7100/11 · May/June 2011 · Q121 Mark

The table shows the cost to the retailer of purchasing canned food from three different sources. cost of purchasing canned food: cash and carry wholesaler $60, traditional wholesaler $70 delivered, manufacturer $75 delivered. Why is the cash and carry wholesaler able to quote the lowest price?

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Agoods are sold only to large-scale retailers

Bno advertising costs are involved

Cno delivery or credit is offered

Dstorage is not required

✓ Correct answer

C: no delivery or credit is offered

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Topic: Wholesale trade, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2011 Paper 1 Variant 1, question 12.

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