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Homework answers / question archive / Suppose an entrepreneur has a capital of Php80, 000 for his small and medium enterprises (SMEs) of seaweed products like ice cream, muffins, puto, pizza, and siopao
Suppose an entrepreneur has a capital of Php80, 000 for his small and medium enterprises (SMEs) of seaweed products like ice cream, muffins, puto, pizza, and siopao. For one year of operation, the gross sales is Php300,000. The production cost which includes the cost of goods, electricity, fixed cost, labor cost, and many others is Php150,000. a. How much is the net profit in one year? b. What is the return of investment in one year?
Total investment = Php 80,000
Gross sales = Php 300,000
Production cost = Php 150,000
(a) Net profit = Gross sales – Production cost
= Php 300,000 - Php 150,000
= Php 150,000
(b)
= 187.5%
Thus net profit in one year = Php 150,000
The return of investment = 187.5%
