1. In Laur, Nueva Ecija, an onion farm has a total net sale of P900,000.

The
gross margin is P180,000. How much is the cost of an onion that were sold?

2. An electronics company calculates gross margin to monitor its pricing

strategy. Last month, the company sold items worth P800,000 and the cost of goods
sold was P350,000. What is the company's gross margin percentage?

3. In National Bookstore Cabanatuan, writing pads are sold at P75.00 each.

However, if a customer will purchase a minimum of 200 pads, a 26.5% trade
discount will be given. If you are a customer buying 300 writing pads in the said
store, how much will you pay for it?

Discounted Price per Pad = P75 - (P75 × 26.5%)

= P75 - P19.88
= P55.13 per pad
Total Cost for 300 pads = 300 × P55.13

= P16,539.00

4. A mobile phone was bought for P6,370.00 net of discount. The selling price
was listed at P8,500.00. Compute for the discount rate.

5.
A starting fast food restaurant wants to take advantage of the economies of

scale to lower down its costs. It purchases raw materials in volume to receive as
much discount as possible. A large meat shop is giving a 5%, 7%, 11% discount for
bulk-buyers. Beef meat is listed at P240 per kilogram. How much will the fast-food
restaurant pay for buying 360 kilograms of beef considering the discount offered?

6. A customer purchases a set of furniture originally priced at P20,000. The

store provides a discount of 20% and 5%. How much does the set of furniture cost?

a. 20000x.20= 4000
20000-4000=16,000
16,000x.05=800
16,000-800 = 15,200

b. 20000x.80=16000 16,000x.95 =15200

7. A business owner
sold goods for P150,000 and incurred P50,000 in cost of goods sold and P25,000 in
operating expenses. After subtracting these expenses, the owner was left with an
amount that reflects the business’s financial gain. Which of the following refers to

the amount left of the selling price after removing all the expenses and cost?
8. A business did not record its depreciation expense at year-end. As a result,
the financial statement shows a higher profit than it should. How would the failure
to record depreciation at year-end affect the financial outcome?
A. Overstatement of profit
B. Understatement of profit
C. No effect on profit
D. None of the above

9. A clothing retailer is deciding whether to sell a dress for P1,200. The cost of
producing the dress is P800, and the retailer wants to make at least a P200 profit
from each sale. Which of the following is the best strategy for the retailer to avoid a
loss?
A. Increase the selling price to P1,500
B. Sell the dress at P1,000 to attract more customers
C. Increase production costs without changing the selling price
D. Sell the dress at a price that covers both the cost and expected profit

10. A Caeli's café sells a cup of coffee for P100. The variable cost per cup is P60,
and the fixed monthly cost for rent and utilities is P50,000. What is the café's break-
even point in units?

11. Little Saint bakery produces loaves of bread at a selling price of P120 each.
The variable cost per loaf is P80, and the bakery's fixed costs are P50,000 per
month. If the bakery's fixed costs increase by 20%, how many loaves must they sell
to break even?
Fixed costs increase by 20% → New fixed costs = P50,000 × 0.20= P10,000
50,000+10000= 60,000
12. A clothing store evaluates whether to continue selling a new clothing line.
The line's selling price is P900 per item, the variable cost is P500 per item, and fixed
costs specific to this line are P150,000. If sales are projected to reach only 450
items, should the store continue selling this line?
A. Yes, because the profit is positive.
B. Yes, because the break-even point is achievable.
C. No, because the variable cost is too high.
D. No, because the sales fall short of the break-even point.

13. A store purchases 50 units of a product at a cost of P350 each. The store sells
each unit for P450. What is the total profit if the store sells all units?
14. Lana bought 130 pieces of bread at P5 each and sold them at P8 each. If 10
pieces were left unsold, how much profit did Lana make?

15. A farmer sells 250 kilograms of mangoes at P50 per kilogram. The cost of
planting and harvesting mangoes is P8,000, and transportation costs are P2,000. If
20 kilograms are damaged during transport, what is the result of operations?
16. A wholesale buyer purchases 300 units of a product at a discounted price of
P260 each. The buyer sells them at P400 each but gives a 10% discount on 50 units
to attract more customers. Calculate the total profit made by the buyer.
Step 1: Compute the Total Cost
 The buyer purchases 300 units at P260 each: 300×260=P78,000300 \times
260 = P78,000300×260=P78,000 Total cost = P78,000

Step 2: Compute the Total Revenue

 The buyer sells 250 units at P400 each (no discount):
250×400=P100,000250 \times 400 = P100,000250×400=P100,000
 The buyer sells 50 units at a 10% discount, meaning each unit is sold at:
400−(400×0.10)=400−40=P360400 - (400 \times 0.10) = 400 - 40 =
P360400−(400×0.10)=400−40=P360
Total revenue from discounted units: 50×360=P18,00050 \times 360 =
P18,00050×360=P18,000
 Total revenue:
100,000+18,000=P118,000100,000 + 18,000 =
P118,000100,000+18,000=P118,000
Step 3: Compute the Total Profit
Total Revenue−Total Cost=118,000−78,000\text{Total Revenue} - \text{Total Cost}
= 118,000 - 78,000Total Revenue−Total Cost=118,000−78,000 =P40,000=
P40,000=P40,000
Final Answer:
The total profit made by the buyer is P40,000.

17. If the purchase price is P77,000 and the buyer wishes to make a 30% down
payment, how much is the down payment?
18. ABM Company had a mortgage worth P2,600,000, the bank required them to
give a 30% down payment. What is the total amount of mortgaged after paying the
down payment?

19. A water utility company charges 1.5% interest on unpaid bills. If a customer
owes P2,200 and delays payment for 3 months, what is the total interest accrued?

20. You are asked to prepare amortization schedule of one your client, during the
interview your client plan to loan amounting ₱400,000 with an annual interest of 5%
for 4 years. Your client chooses annual equal amortization, how much will be total
annual payment?