It is the purchase price and other expenses incurred in buying the products.

It is also referred to as gross margin, which can be determined by deducting the sales returns and allowances and the cost of goods sold from the total sales.

It is operating profit plus other income, less other expenses.

It is the transportation cost associated with the delivery of goods from a supplier or a trading/merchandising firm to its end customers.

The ABC Merchandising purchased goods costing P150,000.00 for the current month. It paid 8,500 for freight for the shipment of goods from the seller to its store. By the end of the month, it sold P310,000.00 worth of these items. The business also incurred the following expenses:

  Delivery  :  P9,200.00   Advertisements   :  P35,500.00

  Salaries  :  P60,000.00  Utilities Expense :  P44,800.00

For the current month, the firm earned interest from its customers amounting to P11,800.00. It also paid an amount of P9,200.00 as interest for the bank loan. How much is the gross profit?

It is the point where a business neither makes a profit or loss, which means the business revenue is equal to its costs.

RSA, a small publishing company spends P71,400 fixed amount to make books. To help the RSA company sell the books, a marketing company charges P120 for each book sold. If the company charges P375 per book, how many books should they sell to break-even?

How much interest will be charged on a loan of P16,500 for three and a half years at an interest rate of 5%?

A sari-sari store owner, Mrs. Abel, borrowed money last November 15, 2019 from a cooperative, which charged 4.5% simple interest. How much is the principal amount if the maturity date is on November 15, 2022, and has an interest of P6,750?