CHAPTER 1

MARKETING PRINCIPLES AND STRATEGIES

ACTIVITY 1.1

Solve for the following:

1. How much is the net profit margin if the total sales of the business for the month is ₱300,000 and
the operating expenses is ₱170,000?

2. Company XYZ, in the same sector as company Jazz Company, had total revenue of 8 million
peso at the end of the same fiscal year. Its total assets were 1 million pesos at the beginning of the
year and 2 million pesos at the end. What is the asset turnover ratio?

3. Compute the Return on Assets if the total assets for 2018 of Lemonade City were 480 million
pesos and the total assets for 2019 were 360 million pesos. The net income is reported at 27
million pesos.

4. What is the debt-to-equity ratio if the business loans amount to 50,000 pesos and the retained
earnings is 100,000 pesos?