Marketing 10 Module II

MODULE TEST

Given the following Profit and Loss Statement:

Sales P150,000.00

Cost of Goods Sold 80,000.00

Gross Profit Expenses: P 70,000.00

Salaries P45,000.00

Transportation 7,000.00

Storage & Warehousing 5,000.00

Postage 500.00 P 57,500.00

Net Profit P 12,500.00

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The following are the functional departments and their allocated expenses:

Total Selling Advertising Purchasing Dept.

Dept. Dept.

Salaries 45,000 P20,000 P10,000 P15,000

Transportation 7,000 4,000 2,500 500

Storage &

Warehouse 5,000 3,000 1,000 1,000

Postage 500 200 150 150

Totals P57,500 P27,200 P13,650 P16,650

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Factors of Variability

Selling Number of sales calls

Advertising Advertising space used

Purchasing Units bought

Sales Calls Advertising Space Purchased Units

Branch No.1 200 500 col. in. 200 units

Branch No. 2 100 200 col. in. 100 units

Branch No. 3 100 100 col. in. 200 units

400 calls 800 col. in. 500 units

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It is assumed that the cost of sales is in the same ratio as the number ofunits purchased, and that sales is allocated as follows:

Branch No. 1 P80,000.00

Branch No. 2 30,000.00

Branch No. 3 40,000.00

Total Sales P150,000.00

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Problem: Prepare the Profit andLoss Statementby branch. (30 points)