BUSINESS MATH

Bring home exam – PROFIT OR LOSS

Answer the following on your quiz notebook.

1. Carmen does buy and sell. She bought a perfume for P450.00. She sold it for P600.00
a. How much was her margin? What was the rate of her margin?
b. What was the markup based on cost?
c. How much profit did she earn?
2. A television set purchased for P5, 400 was resold for P4, 800. How much was the profit or loss in the
transactions?
3. Esther has a small store. Last month, she purchased merchandise costing P75, 000.00 for which she paid freight
of P7, 500. She sold 60% of the merchandise for P68, 000 after spending for various expenses totaling P13, 000.
She also paid P2, 000 for interest on money she borrowed for her store.
a. How much was her cost of sales?
b. How much gross profit did she make?
c. How much operating profit did she make?
d. What was her net profit?
4. Tessie sells jewelry. She had a piece that costs her P12, 800.00 which she sold for P16, 000.00. The only expense
for her was her transportation expenses totaling to P560.00
a. How much was her margin? What is the rate of her margin?
b. What is the markup based on cost?
c. How much profit did she earn?
5. You were given the following data for the Summit Marketing Co. as January 31,201A:
Sales P127, 000
Purchases (merchandise) 57,000
Freight In 5,000
Taxes and Licenses 900
Communication Expense 300
Heat, Light and Water 1,240
Store Supplies Expense 1,180
Office Supplies Expense 730
Miscellaneous Expense 2,090
Interest Income 1,200
Interest Expense 2,000

a. How much is the cost of sales? What percent is it of the sales?

b. What is the margin or gross profit? How much is the amount in peso? How much is the gross profit rate?
c. What is the markup based on cost?
d. How much is the operating profit? What percent is it f sales?
e. How much is the net profit? What percent is it of sales?
f. Prepare an income statement on a separate sheet.
6. Find the break-even point in units and in peso given that the unit price of a certain commodity is P15,000,
variable cost P500 and total fixed cost, P12,000.
7. A start-up company has the following expenses:
Rent = 875
Utilities =115
Material and assembly = 4.75/unit
Monthly labor = 480
If its product sells for 18.99/unit, how many units must it sell to break even?