Hassan ships cars into Ghana, Nigeria, and Benin republic from Europe. The import duty costs are 10%, 25%, and 12% respectively for used cars from the three countries and 25%, 40% and 20% for new cars. Assuming VAT is the same in all three countries and Hassan plans to buy a new car lot worth $100,000 in three months for his business expansion. His current car lot capacity in each country is 50 cars, but he has a credit facility in Europe that allows him to ship as many cars as he wants. Hassan has the following options as a strategy to meet his planned target. A: Give discounts that guarantees the sale of at least 10 cars every week B: Ship 100 cars for the two months, lease space from his friends at a cost, and maintain the standard markup C: Import more luxury cars with a huge markup Which of the above options is best for Hassan? A B C D

Answers 1

Answer:A

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