If a wholesaler sells goods to a retailer at a trade discount of 20% on a list price of ₦80,000, and the retailer later sells all the goods at ₦90,000, what is the retailer's gross profit?

The retailer's cost price = ₦80,000 − (20% × ₦80,000) = ₦80,000 − ₦16,000 = ₦64,000. Gross profit = Selling price − Cost price = ₦90,000 − ₦64,000 = ₦26,000. Option A (₦10,000) ignores the trade discount, and option B (₦16,000) represents only the discount amount.