INDEPENDENT LEARNING SESSION NO. 2 BUYING AND SELLING PROFIT AND LOSS Answer the following questions. Show your solutions. 1. A liter of natural drinking water cost P18.50. When it is sold for P25, how much is the markup of the drinking water? 2. A package of 50 chocolates that cost P634.50 was sold, and the total income from reselling it was P750. What was the selling price, unit cost, and unit mark-on of the chocolates? 3. What is the rate of mark-on based on cost for a stand-alone drawer that is being sold for P899.75 if it costs P779.75? 4. An ABM Student buys a pad of yellow paper (50sheets) for P50.75 and resell it for P2 per sheet to his classmates, compute the rate of mark-on based on cost. 5. If the selling price of an item has been increased from P495 to P650, what is the mark-up rate? 6. What is the new selling price of a smart TV worth P34,999 when the store manager decided to give a markdown rate of 15% on all items as part of the store’s 15th year anniversary promo? 7. To boost the sales of your store, you decided to apply a markdown rate of 35% on all items. If the original price of an item was P790, what is its new selling price? 8. What is the net price of an item listed for P55,780 and has a trade discount series of 20/15/10? What is the equivalent single rate for the discount series? 9. Your store manager received an invoice dated April 29 amounting to P4,950 with terms of 10/15 and n/30. How much cash discount was given by your supplier if the invoice was paid on May 5? 10. Determine the Cost of Goods sold if company records show that your company has a beginning inventory of P2,464,000, purchases of P765,432 and ending inventory of P915,000. 11. Based on the accounting record, your firm has an ending inventory of P 675,489, and its cost of goods sold was P987,654. If you have a beginning inventory of P524,310 on record, what is the amount of purchases that your firm made? 12. The manager reported that the net sales for the month was P975,690 and the gross sales was P1,024,650. How much was the sales returns and allowances of the company? 13. What is your gross sales if your net sales is P876,543, sales returns and allowances amount to P210,000, and discount is P25,000? 14. Your business partner informed you that the average monthly cost of goods sold was P45,075 and the desired profit was 35% of the average monthly cost of goods sold. Calculate the required monthly net sales of your business. 15. Compute the net profit/loss of a business that has a gross profit of P124,500 and operating expenses is P76,825. 16. If a young entrepreneur declared a net profit of P56,270 from her gross profit of P175,480 last month, how much were the operating expenses that he incurred? 17-20. You own a small business that sells snacks. Your record shows the following ITEM SELLING PRICE VARIABLE COST PERCENT OF SALES Burger Lumpia Turon Mineral Water P35 P20 P15 P20 P15 P7 P5 P11 You decided to join the market fair, so you rented one booth for P5,000 per day. You estimated your labor cost to be P800 a. What is your BEP in pesos per day? b. How much of each item would you expect to sell per day to break even?
