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Question - The Neneng Corp. established its San Pedro branch in March 2016. During the first year of operations, the home office shipped to the branch merchandise which had a cost of P120,000. Three-fourths of these merchandise was sold by the branch for P141,000. Operating expenses of the branch amounted to P27,000.
Required - How much net income will the branch report if merchandise is billed by the home office to the branch at 25% above cost?
a. 800
b. 1,200
c. 1,500
d. 8,000
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Jose is a graduate assistant at a State University
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