nnie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000.00 per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen @ P12,000.00 each unit. What was her profit or loss? Solution: Cost of goods sold = P200,000 Revenue from one dozen smartphones: Selling price × Number of units = (18,000 × 6) + (12,000 × 6) = ₱180,000 Cost: 200,000.00 x (1 – 5%) = ₱190,000.00 Profit: Net Sales – Cost 180,000.00 – 190,000.00 = ₱-10,000.00 Compute the following requirements: a. Gross profit rate b. Operating profit margin rate c. Net profit margin rate d. Return on Investment
nnie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000.00 per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen @ P12,000.00 each unit. What was her profit or loss? Solution: Cost of goods sold = P200,000 Revenue from one dozen smartphones: Selling price × Number of units = (18,000 × 6) + (12,000 × 6) = ₱180,000 Cost: 200,000.00 x (1 – 5%) = ₱190,000.00 Profit: Net Sales – Cost 180,000.00 – 190,000.00 = ₱-10,000.00 Compute the following requirements: a. Gross profit rate b. Operating profit margin rate c. Net profit margin rate d. Return on Investment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000.00 per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen @ P12,000.00 each unit. What was her profit or loss?
Solution:
Cost of goods sold = P200,000
Revenue from one dozen smartphones:
Selling price × Number of units = (18,000 × 6) + (12,000 × 6) = ₱180,000
Cost: 200,000.00 x (1 – 5%) = ₱190,000.00
Profit: Net Sales – Cost
180,000.00 – 190,000.00 = ₱-10,000.00
Compute the following requirements: a. Gross profit rate b. Operating profit margin rate c. Net profit margin rate d.
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