Consider the scenario below:A TV manufacturer and seller sold 50 units for a total of P3,750,000 worth of television sets for the month of August 2018. Fixed Expenses at P1,000,000 and Variable Expenses at P888,000.Compute for the Profit.Select one:a.8,622,000b.1,862,000c.2,862,000d.1,268,000
Question
Consider the scenario below:A TV manufacturer and seller sold 50 units for a total of P3,750,000 worth of television sets for the month of August 2018. Fixed Expenses at P1,000,000 and Variable Expenses at P888,000.Compute for the Profit.Select one:a.8,622,000b.1,862,000c.2,862,000d.1,268,000
Solution
To compute for the profit, you need to subtract both the fixed and variable expenses from the total sales. Here's how you do it:
Step 1: Compute for the total expenses. Total Expenses = Fixed Expenses + Variable Expenses Total Expenses = P1,000,000 + P888,000 Total Expenses = P1,888,000
Step 2: Subtract the total expenses from the total sales to get the profit. Profit = Total Sales - Total Expenses Profit = P3,750,000 - P1,888,000 Profit = P1,862,000
So, the correct answer is b. P1,862,000.
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