Determine the amount of the value added tax

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Reference no: EM132916092

Questions -

Q1. Gross Margin Based on Sales: Rolly Company wants to sell a product at a gross margin of 40%. The cost of the product is P120.00. What selling Price should be charged for the product?

Q2. ROI Pricing: Lite Coprpration wishes to earn a 40% return on ots P200,000.00 investment in the facilities used to product A. Estimated sales voulume is 40,000 units for which the company expects to incur the following unit costs:

Variable manufacturing Cost P4.00

Fixed Manufacturing Costs P2.00

Variable selling and administrative costs P1.50

Fixed Selling and Administrative Cost P0.50

At how much per unit should Product A be prices for sale?

Q3. Full Cost Pricing. Cheryl Corporation produces a product which a variable cost of P150 per unit. Total fixed cost amounts to P500,000 and is allocated to the products based on the number of units produced. Selling price is determined by adding a 20% mark-up to full cost. How much should the selling price be per unit for 10, 000 units?

Q4. Effect of Sales Tax and Service Charge on Price Setting. Pol Caterers quotes a price of P120 per person for a dinner party. This price includes 6% sales tax and 15% service charge. Sales tax is computed of the food plus the service charge. The Service charge is computed on the food only. At what amount does Pol price the food?

Q5. Trade Discount: Malen company sells its product ay P400.00 each, which includes allowance for a 3% trade discount based on gross sales. Determine the net selling price for Malen's Product?

Q6. Value Added Tax: Linda Company's product has a tag price of P350.00 inclusive of value added tax. Determine the amount of the value added tax included in the tag price.

Reference no: EM132916092

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