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Surf Laundry opens for business from Monday thru Saturday or 24 days a month. There are two laundry assistants and one supervisor operating the business daily. Surf laundry receives an average of 5,000 kilos of laundry items everyday. The laundry price per kilo is P20.00. The cost of laundry is 12% of total revenue. Total operating expenses is 50% of total revenue.
Problem 1: If the average laundry remains at 5,000 kilos every day, but it increased its price by 15%; what is the effect of the price increase on gross profit and net income?
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