1. A wrist watch is being sold for P3,250.65 with a 3. 24.

Anna is a senior citizen who ordered food

markup based on selling price of 12.5% . What is from Jollibee for an amount of P 1,512. The said
the cost of the wrist watch? amount is inclusive of value-added (VAT) of 12 % .
Anna also paid the delivery fee of P56. How much
SOLUTION: To find the cost of the wrist watch, we
is the total amount paid by Anna if the VAT is
need to subtract the markup from the selling price.
removed?
Markup = Selling Price * Markup Percentage The total amount paid by Anna is P 1,512 inclusive
Markup = ( P 3,250.65 ) * ( 12.5 % ) of a 12% value-added tax (VAT). To find the total
Markup = ( P 3,250.65 ) * 0.125 amount paid by Anna if the VAT is removed, we
Markup = ( P 406.33 ) need to subtract the VAT amount from the total
Cost = Selling Price - Markup amount.
Cost = ( P 3,250.65 ) - ( P 406.33 )
Cost = ( P 2,844.32 ) SOL. The VAT amount can be calculated by
Therefore, the cost of the wrist watch is P2,844.32 multiplying the total amount by the VAT rate:

2. You bought a house and lot with a selling price of VAT amount = 12% * P 1,512
P 1,212,500.00 in which you pay 25% as down = P 0.12 * P 1,512
payment. You made a mortgage loan for the = P 181.44
remaining amount with an annual interest rate of 5 To find the total amount paid by Anna without
% payable for 30 years. Supposed that you agreed VAT, we subtract the VAT amount from the total
to pay the loan monthly, how much is your monthly amount:
payment? Total amount without VAT = P 1,512 - P 181.44
= P 1,330.56
SOL.: To calculate the monthly payment for the
mortgage loan, we can use the formula for the 4. Ariadne is a salesperson for Turgo Corporation.
monthly payment on a fixed-rate mortgage: The company pays 6.5 % commission on sales, and
Monthly Payment = Loan Amount * Monthly gives Ariadne a draw against commission of
Interest Rate (1 - (1 + Monthly Interest Rate) (-n)) P12,000 per month. If she receives his draw at the
beginning of the month and then sells P800,000
Where: during the month, how much is owed to Ariadne?
Loan Amount = Selling Price - Down Payment
Monthly Interest Rate = Annual Interest Rate / 12 Ariadne receives a draw against commission of
n = Number of monthly payments (30 years * 12 P12,000 per month. The commission rate is 6.5%
months per year) on sales. To calculate the commission earned, we
multiply the sales amount by the commission rate:
Loan Amount = ( P 1,212,500.00) - (( P Commission earned = 6.5% * P800,000
1,212,500.00 ) * ( 25 % )) = 0.065 * P800,000

Loan Amount = ( P 1,212,500.00) - ( P 303,125.00 ) = P52,000

Loan Amount = ( P 909,375.00 )
Monthly Interest Rate = ( 5 % ) / 12 Since Ariadne receives a draw against commission
n = 30 years * 12 months per year = 360 months of P12,000 per month, the amount owed to Ariadne
Using the formula: is the difference between the commission earned
Monthly Payment = ( P 909,375.00 ) * ({0.05}{12} and the draw:
) / (1 - (1 + ( {0.05}{12} )) (-360))
Monthly Payment = P 4,881.72 Amount owed to Ariadne = P52,000 - P12,000
= P40,000
Therefore, your monthly payment for the mortgage
loan is P 4,881.72 .
5. The RRS Company produces fertilizers that are or loss ratio of 70% and 30%, respectively. How
sold for P 85 per kilogram. The fixed monthly cost much is the share of Festin, in decimal form, from
of producing the fertilizer is P125,000 . The total the total net profit? Round-off your answer into two
cost of direct materials and labor is P 65/kg. If the (2) decimal places.
company wanted to earn a monthly income of
P60,000 , how many kilograms of fertilizers should To find Festin's share of the total net profit, we need
it produce? to calculate the amount based on the profit or loss
𝐹𝐶 + 𝐷𝑒𝑠𝑖𝑟𝑒𝑑 𝑃𝑟𝑜𝑓𝑖𝑡 ratio.
𝐴𝑐𝑡𝑢𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 =
𝑆𝑃 − 𝑉𝐶
Given:
125,000 + 60,000 Leonen's share = P 2,750,000
𝐴𝑐𝑡𝑢𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 =
85 − 65 Abad's profit or loss ratio = 70%
Festin's profit or loss ratio = 30%
185,000 Let's calculate Festin's share:
𝐴𝑐𝑡𝑢𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 =
20 Total net profit = P 4,500,000
Leonen's share: P 2,750,000
𝐴𝑐𝑡𝑢𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 = 𝑃𝐻𝑃 9,250 Remaining net profit: Total net profit - Leonen's
share
Remaining net profit: P 4,500,000 - P 2,750,000
2
6. Ariel earns 2 3 times as much as Brylle. If Ariel Remaining net profit: P 1,750,000
earns P 20,410 per month, how much is the earnings
Festin's share: Festin's profit or loss ratio *
of Brylle per month?
Remaining net profit
2
Just multiply 2 3 and P 20,410 Festin's share: 0.3 * P 1,750,000
3
Convert: 2 5 * 20,410 = PHP7,830 Festin's share: P 525,000

Therefore, Festin's share of the total net profit is P

7. ABC Corporation is the leading manufacturer of 525,000.
beverages in the country. For the year, it incurred an
overhead expense of P 650,000,000. The said
expenses will be allocated to the marketing, 9. A boutique determined that the number of shorts
operating, and administrative departments using the it can sell (S) is inversely proportional to the, price
ratio of 6: 10: 9, respectively. How much is the (P) of the short. There are 3,000 shorts that can be
expenses that should be allocated to each sold if the price is P345. How many shorts can be
department? sold if the price is P 360?
SOL.:Find the value of x.
6x + 10x + 9x = 650,000, 000 add like terms 【Explanation】: The relation S is inversely
25x = 650,000, 000 divide both side by 25 proportional to P can be formalized as S = k/P
x = 26,000,000 where k is the constant of variation. Reflecting the
For marketing: 6x 6(26,000,000) = 156,000,000 constant nature of k, we find k is equal to S*P. For
For Operating: 10x 10(26,000,000) = 260,000,00 3,000 shorts sold at P345, k is 3000 multiplied by
For adminitrative: 9x 9(26,000,000) = 234,000,00 345, which gives us 1035000. Filling in the shorts
sales at P360 involves finding S, such that S =
1035000/360, leading us to S approximately equal
8. Abad, Festin, and Leonen are partners in Lex to 2875 when rounded to the next integer, as shorts
Talionis Firm (LTF) in which Leonen was assigned cannot be divided.
to manage it. At the end of the year, Leonen Therefore, the boutique can sell approximately 2875
received P2,750,000 from the P4,500,000 net profit pairs of shorts when the price is P360.
of the company. Abad and Festin divided among
themselves the remaining net profit using the profit
10. Alona beach resort is operating a 40 unit which To calculate the breakeven point, we need to
in cured a monthly fixed cost of 360,000 pesos. the consider the total cost and the selling price per
price per unit of motel for a day is 1,400 pesos for jacket.
the month of April, the company has a break-even
occupancy of 45 per unit how much is the variable The variable cost per jacket is the sum of the cost of
cost for unit the company must incurred to break materials (900 pesos) and direct labor (150 pesos),
even? which amounts to 900 + 150 = 1050 pesos.
The fixed cost is given as 88,000 pesos.
To calculate the variable cost per unit that the The selling price per jacket is 1,600 pesos.
company must incur to break even, we need to
determine the total revenue required to cover the To calculate the breakeven point, we can use the
fixed costs. following formula:
Breakeven Point = Fixed Costs / (Selling Price per
Given: Unit - Variable Cost per Unit)
Fixed costs (F) = 360,000 pesos Plugging in the values, we have:
Break-even occupancy per unit (BE) = 45 units
Price per unit (P) = 1,400 pesos Breakeven Point = 88,000 / (1,600 - 1,050)
Breakeven Point = 88,000 / 550
First, we calculate the total revenue required to Breakeven Point ≈ 160
cover the fixed costs:
Total revenue (TR) = Fixed costs (F) / Break-even Therefore, the STI Alumni Association needs to sell
occupancy per unit (BE) approximately 160 jackets to break even.
TR = 360,000 pesos / 45 units
TR = 8,000 pesos 12. Czarina plans to buy a laptop from a store in
Shopee. On December 2, the price of the laptop was
Next, we subtract the variable cost per unit (VC) P45,000. However, on December 12, Shopee had a
from the price per unit (P) to find the contribution sale and the laptop is now selling for P 24,000.
margin per unit (CM): What is the percent decrease of the price of the
CM = Price per unit (P) - Variable cost per unit laptop?
(VC)
Answer: 46.67%
Since the company is aiming to break even, the
contribution margin per unit (CM) must be equal to 【Explanation】: To find the percent decrease in
zero. the price of the laptop,
CM = P - VC we first find out how much the price decreased:
0 = 1,400 pesos - VC 45,000 - 24,000 = 21,000 Peso.
Solving for VC: Then we divide this decrease by the original price:
VC = 1,400 pesos 21,000 / 45,000 = 0.4667.
That result must then be multiplied by 100 to
Therefore, the variable cost per unit that the convert it into a percentage, yielding a 46.67%
company must incur to break even is 1,400 pesos. decrease in the price of the laptop.

11. The STI Alumni Association plans to produce

school jackets which will be sold for 1,600. The
variable cost per jacket include 900 pesos for the
materials and P150 for direct labor. The fixed cost
in producing the jacket amounted to P88,000. How
many jackets the STI Alumni Association needs to
sell to breakeven?
1. Fractions, Types, and operation of fraction
2. Decimal
3. Salary plus commission
4. Sales revenue
5. Proportions and types
6. Fixed cost
7. Taxation
8. Draw against Commission
9. Simple interest and formulas
10. Percentage, rate and base formulas
11. TR = Total FC + Total VC ---break-even point in peso formula
𝑟
𝑃( )
𝑛
12. 𝑝𝑚𝑡 = 𝑟 --- installment payments for a loan
1−( )−𝑛𝑡
𝑛