. Suppose the gross sales of Lukah’s Coffee Shop for the month of April is Php 50,000. How much is its gross profit? A. 50,000 B. 32,000 C. 20,500 D. 38,500 2. How about its income before tax? A. 50,000 B. 32,000 C. 20,500 D. 38,500 3. Suppose the government imposes a 5% income tax on all businesses earning an income worth Php 50,000 and below. Solve for the income after tax of Lukah’s Coffee Shop. A. 30,400 B. 32,000 C. 20,000 D. 19,475
. Suppose the gross sales of Lukah’s Coffee Shop for the month of April is Php 50,000. How much is its gross profit? A. 50,000 B. 32,000 C. 20,500 D. 38,500 2. How about its income before tax? A. 50,000 B. 32,000 C. 20,500 D. 38,500 3. Suppose the government imposes a 5% income tax on all businesses earning an income worth Php 50,000 and below. Solve for the income after tax of Lukah’s Coffee Shop. A. 30,400 B. 32,000 C. 20,000 D. 19,475
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 1E: Study the performance report for Barbaras Bistro in Figure 1-2 of the chapter and write a brief...
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1. Suppose the gross sales of Lukah’s Coffee Shop for the month of April is Php 50,000. How much is its gross profit?
A. 50,000
B. 32,000
C. 20,500
D. 38,500
2. How about its income before tax?
A. 50,000
B. 32,000
C. 20,500
D. 38,500
3. Suppose the government imposes a 5% income tax on all businesses earning an income worth Php 50,000 and below. Solve for the income after tax of Lukah’s Coffee Shop.
A. 30,400
B. 32,000
C. 20,000
D. 19,475
4. Now, suppose the rent expense increased from Php 3,500 to Php 4,000. What is now the income before tax of Lukah’s Coffee Shop?
A. 30,400
B. 32,000
C. 20,000
D. 19,475
5. Given the change in the gross profit due to an increase in the cost of rental space, how much, then, is the income after tax of Lukah’s Coffee Shop?
A. 30,400
B. 32,000
C. 20,000
D. 19,000
Transcribed Image Text:PROBLEM SOLVING. Solve for the value of the variables being asked in
the questions.
The table below shows the expenses incurred by Lukah's Coffee Shop for the month of April.
+
Expenses
Total Cost
Rent
Php 3,500
Salaries
Php 8,000
Supplies and materials
Php 18,000
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