TRINITY POLYTECHNIC COLLEGE INC.

892 Alfina Bldg., Quirino Highway, Brgy. Gulod, Novaliches, Quezon City
E Telephone Number: 7738-1713
Email: [email protected]

PROJECTING REVENUE, COST, AND PROFIT

Helaena Jae Ramirez Mr. Ricaport

Magat

12 – Henry Sy November 25,

2022

Ms. Kyla Patty resigned from her previous job and started a business. She is known as someone
who never skips a skin care routine at night. Ms. Patty wanted to open her own shop and resell
rejuvenating products. She then canvassed some sellers and manufacturers. She concluded that
it’s possible to sell around 25 packs of rejuvenating set and at least 30 pcs of skin toner per day.
She get her items to a supplier she knows. She’s being charged 150php per pack of rejuvenating
set and 90php for the toner. She then wants to raise the price for 45%.

She gather order first before sending an order to her supplier. Her supplies charges her 40 pesos
handling fee every 25 items that she order. Ms. Kyla also renting an apartment for her shop the
cost 8,000php per month. Estimated combined bill for electricity and water is 1,200php and will
be paying tax every month for 1,050php and about 12,600php annually.

1.What is given? (5pts)

2. Get the Total Revenue (Daily, Weekly, Monthly and Yearly) (8pts)
3. How many Rejuvenating set can be sold in a week, month, and year (6pts)
4. How much is the total cost in a month and a year. (6pts)
5. Compute the freight in (Monthly and Yearly) (4pts)
6. Compute the Gross Profit and Gross Profit Rate (1month only) (2pts)
7. Compute the Operating Profit Margin and Operating Profit Margin Rate. (1 month only)
(2pts)
8. Compute the Net Profit Margin and Net Profit Margin Rate. (1 month only) (2pts)

Answers:

Page 1 of 7
 TRINITY POLYTECHNIC COLLEGE INC.
892 Alfina Bldg., Quirino Highway, Brgy. Gulod, Novaliches, Quezon City
E Telephone Number: 7738-1713
Email: [email protected]

1.) Given: Rejuvenating Set = 25 packs, Skin Toner = 30 pcs., Suppliers Charge per pack of
Rejuvenating Set = ₱150, Suppliers Charge per Skin Toner = ₱90, Mark-up = 45%,
Handling Fee for every 25 items = ₱40, Rent Payable = ₱8,000, Bills Payable = ₱1,200,
Monthly Tax = ₱1,050 and Annual Tax = ₱12,600

2.) Mark Up Price = ( cost x desired mark up percentage)

Mark Up for Rejuvenating Set = ( 150.00 x .45)
Mark Up for Rejuvenating Set = 67.50
In calculating for the selling price, the formula is shown below:
Selling Price = Cost + Mark Up
Selling Price = 150.00 + 67.50
Selling Price for Rejuvenating Set = 217.50
Mark Up for Skin Toner = ( 90.00 x .45)
Mark Up for Skin Toner = 40.50
Selling Price = 90.00 + 40.50
Selling Price for Skin Toner = 130.50

 In order to get the Daily Revenue, Selling Price is multiplied by the Average Items Sold
per Day.
217.50 × 25 = 5,437.50
Add the total
130.50 × 30 = 3,915
The total daily revenue of all the items will be added then the result will be the DAILY
REVENUE.
The Daily Revenue of Ms. Kyla Patty’s Rejuvenating Business is ₱9,352.50.

PROJECTED DAILY REVENUE

Ms. Patty’s Rejuvenating Business

Products Cost Mark- Selling Projected Average Projected (Daily)
per up 45% Price Volume Number Revenue E=C×
piece B=A× C=A+ (D) of Items (E) D
(A) .45 B Sold
(B) (C) (Daily)
Rejuvenating ₱150 ₱67.50 ₱217.50 25 ₱5,437.50
Set
Skin Toner ₱90 ₱40.50 ₱130.50 30 ₱3,915
Total: ₱240 ₱108 ₱348 55 ₱9,352.50

 To get the Weekly Revenue, the Daily Revenue is multiplied by 7 days.

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 TRINITY POLYTECHNIC COLLEGE INC.
892 Alfina Bldg., Quirino Highway, Brgy. Gulod, Novaliches, Quezon City
E Telephone Number: 7738-1713
Email: [email protected]

9,352.50 × 7
The Weekly Revenue of Ms. Kyla Patty’s Rejuvenating Business is ₱65,467.50.

PROJECTED WEEKLY REVENUE

Ms. Patty’s Rejuvenating Business

Products Cost Mark Selling Projecte Averag Projecte (Daily (Weekly)
per -up Price d e d ) E × 7 days
piec 45% C=A Volume Numbe Revenue E=C
e B=A +B (D) r of (E) ×D
(A) × .45 (C) Items
(B) Sold
(Daily)
Rejuvenatin ₱15 ₱67.5 ₱217.5 25 ₱5,437.50 ₱38,062.5
g Set 0 0 0 0
Skin Toner ₱90 ₱40.5 ₱130.5 30 ₱3,915 ₱27,405
0 0
Total: ₱24 ₱108 ₱348 55 ₱9,352.50 ₱65,467.5
0 0

 To get the Monthly Revenue, Daily Revenue is multiplied by 30 days.

9,352.50 × 30
The Monthly Revenue of Ms. Kyla Patty’s Rejuvenating Business is ₱280,575.

 To get the Yearly Revenue, Daily Revenue is multiplied by 365 days.

9,352.50 × 365
The Yearly Revenue of Ms. Kyla Patty’s Rejuvenating Business is ₱3,413,662.50.
PROJECTED MONTHLY AND YEARLY REVENUE

Ms. Patty’s Rejuvenating Business

Products Selling Projecte Average Projecte Projecte Averag Projected
Price d Number d d e Revenue
C=A Volume of Items Revenue Volume Numbe (Yearly)
+B F=D× Sold (Monthl H=D× r of I=C×H
(C) 30 days (Monthl y) 365 Items
y) G=C× days Sold
F (Yearly
)

Page 3 of 7
 TRINITY POLYTECHNIC COLLEGE INC.
892 Alfina Bldg., Quirino Highway, Brgy. Gulod, Novaliches, Quezon City
E Telephone Number: 7738-1713
Email: [email protected]

Rejuvenatin ₱217.5 750 ₱163,125 9,125 ₱1,984,687.5

g Set 0 0
Skin Toner ₱130.5 900 ₱117,450 10,950 ₱1,428,975
0
Total: ₱348 1,650 ₱280,575 20,075 ₱3,413,662.5
0

3.) Rejuvenating Set sold Weekly

25 packs/day × 7 days = 175 packs per week
Rejuvenating Set sold Monthly
25 packs/day × 30 days = 750 packs per month
Rejuvenating Set sold Yearly
25 packs/day × 365 days = 9,125 packs per year

4.) Total Cost in a Month ₱206,390.

 Average Number of Items Sold / item will be multiplied by 30 days to get the number of
items sold per month.
Rejuvenating Set 25 × 30 = 750pcks.
Skin Toner 30 × 30 = 900pcs.
 To get the Cost of Purchases, Cost per unit is multiplied by the number of items sold per
month.
Rejuvenating Set 150 × 750pcks. = ₱112,500
Skin Toner 90 × 900pcs. = ₱81,000
Total Cost of Purchases (Monthly) = ₱193,500
 To get the Freight In (per month), the formula is shown below:
1,650 items ÷ 25 × 40 = ₱2,640

Merchandise Inventory, beginning ₱00.00

Add: Net Cost of Purchases ₱193,500.00
Freight-in ₱2,640.00
Cost of Goods Available for Sale ₱196,140.00
Less: Merchandise Inventory, end ₱00.00
Cost of Goods Sold ₱196,140.00

Operating Expenses (MONTHLY)

Add: Rent ₱8,000.00
Utilities (Electricity and Water) ₱1,200.00

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 TRINITY POLYTECHNIC COLLEGE INC.
892 Alfina Bldg., Quirino Highway, Brgy. Gulod, Novaliches, Quezon City
E Telephone Number: 7738-1713
Email: [email protected]

Monthly Tax ₱1,050.00

Total Operating Expense ₱10,250.00
 To calculate the total costs incurred by the business, cost of goods sold and total
operating expenses are added.
Cost of Goods Sold ₱196,140.00
Total Operating Expense ₱10,250.00
Cost ₱206,390.00
Projected Cost of Goods Sold (Monthly)

Ms. Patty’s Rejuvenating Business

Type of Products Cost per unit (A) Projected Average Projected Costs of
Volume Number Purchases
F = (D × of Items (Monthly)
30 days) Sold J = (A × F)
(Monthly
)
Rejuvenating Set ₱150 750 ₱112,500
Skin Toner ₱90 900 ₱81,000
Total: ₱240 1,650 ₱193,500

Total Cost in a Year ₱2,509,370.00.

 Average Number of Items Sold / item will be multiplied by 365 days to get the number
of items sold per year.
Rejuvenating Set 25 × 365 = 9,125pcks.
Skin Toner 30 × 365 = 10,950pcs.
 To get the Cost of Purchases, Cost per unit is multiplied by the number of items sold per
year.
Rejuvenating Set 150 × 9,125pcks. = ₱1,368,750
Skin Toner 90 × 10,950pcs. = ₱985,500
Total Cost of Purchases (Yearly) = ₱2,354,250
 To get the Freight In (per year), the formula is shown below:
20,075 items ÷ 25 × 40 = ₱32,120

Merchandise Inventory, beginning ₱00.00

Add: Net Cost of Purchases ₱2,354,250.00
Freight-in ₱32,120.00
Cost of Goods Available for Sale ₱2,386,370.00
Less: Merchandise Inventory, end ₱00.00
Cost of Goods Sold ₱2,386,370.00

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 TRINITY POLYTECHNIC COLLEGE INC.
892 Alfina Bldg., Quirino Highway, Brgy. Gulod, Novaliches, Quezon City
E Telephone Number: 7738-1713
Email: [email protected]

Operating Expenses (YEARLY)

Add: Rent ₱96,000.00
Utilities (Electricity and Water) ₱14,400.00
Annual Tax ₱12,600.00
Total Operating Expense ₱123,000.00
 To calculate the total costs incurred by the business, cost of goods sold and total
operating expenses are added.
Cost of Goods Sold ₱2,386,370.00
Total Operating Expense ₱123,000.00
Cost ₱2,509,370.00
Projected Cost of Goods Sold (Yearly)

Ms. Patty’s Rejuvenating Business

Type of Products Cost per unit (A) Projected Average Projected Costs of
Volume Number Purchases
F = (D × of Items (Monthly)
365 days) Sold J = (A × F)
(Yearly)
Rejuvenating Set ₱150 9,125 ₱1,368,750
Skin Toner ₱90 10,950 ₱985,500
Total: ₱240 20,075 ₱2,354,250

5.) Freight-in Monthly ₱2,640

 To get the Freight In (per month), the formula is shown below:
1,650 items ÷ 25 × 40 = ₱2,640
Freight In paid by Ms. Patty Monthly
Type of Products No. of Items Sold Projected Average Freight In (January
(Daily) Volume Number only)
F = (D × of Items K = (F ÷ 25) × 40
(D) 30 days) Purchase
d
(Monthly)
Rejuvenating Set 25 750 ₱1,200
Skin Toner 30 900 ₱1,440
Total: 55 1,650 ₱2,640

Freight-in Yearly ₱32,120

 To get the Freight In (per year), the formula is shown below:

Page 6 of 7
 TRINITY POLYTECHNIC COLLEGE INC.
892 Alfina Bldg., Quirino Highway, Brgy. Gulod, Novaliches, Quezon City
E Telephone Number: 7738-1713
Email: [email protected]

20,075 items ÷ 25 × 40 = ₱32,120

Freight In paid by Ms. Patty Yearly
Type of Products No. of Items Sold Projected Average Freight In (1 year)
(Daily) Volume Number
F = (D × of Items
(D) 365 days) Purchase K = (F ÷ 25) × 40
d (Yearly)
Rejuvenating Set 25 9,125 ₱14,600
Skin Toner 30 10,950 ₱17,520
Total: 55 20,075 ₱ 32,120

6.) Gross Profit for 1 month Gross Profit Rate for 1 month
Net Sales ₱280,575.00 ₱84,435.00
Less: Cost of Sales ₱196,140.00 ₱280,575.00
Gross Profit ₱84,435.00 Gross Profit Rate = 30.09%

7.) Operating Profit Margin for 1 month Operating Profit Margin Rate for 1 month
Gross profit ₱84,435.00 ₱74,185.00
Less: Operating expenses ₱10,250.00 ₱280,575.00
Operating Profit Margin ₱74,185.00 Operating profit margin rate = 26.44%

8.) Net Profit Margin for 1 month Net Profit Margin Rate for 1 month
Operating Profit Margin ₱74,185.00 ₱73,135.00
Add: Interest Income ₱0.00 ₱280,575.00
Total ₱74,185.00 Net Profit Margin Rate = 26.07%
Less: Interest Expense ₱0.00
Income Tax ₱1,050.00
Net Profit Margin ₱73,135.00

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