1ST SEMESTER A.Y.

2017-2018

BUSMATH 01: ACTIVITY

GENERAL INSTRUCTIONS: Write your solution and answer on a separate sheet of paper. BOX your final answer.

PROFIT OR LOSS
1. The following data were taken from the records of TUON TA Department Store for the year ended December
31, 2016
Inventory, ending P275,000
Sales 290,000
Purchases 350,000
Inventory, beginning 160,000
Purchase returns 50,000
Sales returns 40,000
Purchase discount 2% of net returns
Gas & oil 2,000
Freight out 7,000
Freight-in 15,000
Rent expense 4,000
Taxes & licenses 3,000
Other expenses 17,500
Sales discount 5% of net returns
Required: Compute for the following:
a. Net Sales P 237,500
b. Net Purchases P 309,000
c. Cost of Sales P 194,000
d. Gross Profit P 43,500
e. Net Profit/(Loss) P 10,000

2. The following data concern a certain product of SISIW Company:

Sales, 100,000 units @ P10.00
Purchases, 180,000 units @ P7.00
Total available for sale P1,260,000
Assuming that there is no beginning inventory, how much is the ending inventory? P560,000
3. SALIG LANG Supermarket has net purchases amounting to P1,200,000 during the month. Its inventory has
decreased by P200,000 at the end of the month. If the supermarkets sales and operating expenses are
P2,300,000 and P300,000 respectively, how much is the net profit of the supermarket? P600,000

BREAK-EVEN
4. Find the break-even point in units and in peso given that the selling price of a certain commodity is P15; unit
variable cost, P5; and total fixed cost, P12,000. 1,200 units ; P18,000

5. A companys variable cost per unit is P7 and total fixed cost is P9,000. If the company sold a total of 10,000
units yielding a total sales of P150,000, find the break-even point in units and in peso. 1,125 units; P16,875

-End-

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BUSMATH 01 | Business Math 1