BUSINESS MATH REVIEWER

a. Maria sells dressed chicken in his village. He buys his supply of chicken from a distributor at ₱ 150.00 per kilo. He
charges a 20% markup based on the cost to set up his selling price. Maria rents a small storage space for ₱3,000 a
month. He also incurs monthly water and electricity expenses for ₱ 2,000 and the salary of his store clerk for ₱ 3,000.
During a month of operation, he was able to sell a total of 1,000 kilos of dressed chicken.

1. How much is the total variable cost incurred for the month?
2. How much is the total fixed cost incurred for the month?
3. What is the selling price of the dressed chicken per kilo?
4. How much are the net sales during the month?
5. What is the result of Maria’s business for the month?

b. May is planning to run a coffee shop where she plans to sell each cup of coffee at ₱50.00. The fixed cost amounts
to ₱40,000.00 and includes all her expenses for the rent, wages, basic needs, and others. So even if May cannot sell,
she is still obliged to pay this amount. If it costs May an average of ₱10.00 for every cup of coffee which is allotted for
the bulk of coffee beans, purified water, and coffee filters, then:

1. How much profit will he earn if he sells 500 cups?

2. How many cups of coffee must be sold to earn a profit of ₱50,000.00?

c. A home is purchased for ₱182,500. If the down payment is 20% of the purchase price, the amount of the
down payment is?

d. If a building is purchased for ₱540,000 and a 15% down payment is required, what is the amount of the
mortgage the owner must obtain?

e. Evelyn wants to save some money for a vacation in 4 years. She decides to purchase an ordinary annuity
paying 5% semiannually. If her payment is ₱200.00, find the future value of the annuity in 4 years.

AMORTIZATION TABLE