A man formerly employed as chief mechanic of an automobile repair shop has saved P1,000,000.00 which are now invested in certain securities giving him an annual dividend of 15%. He now plans to invest this amount in his own repair shop. In his resents job, he is earning P25,000.00 a month, but he has to resign to run his own business. He will need the services of the following: 2 mechanics each earning P400.00 a day, and 8 helpers each earning P200.00 a day. These men will work on the average300 days per year. His other expenses are the following:Rental 30, 000.00 a monthMiscellaneous 25,000 a monthSales tax 3% of gross incomeInsurance 2%The length of his lease is 5 years. If the average charge for each car repaired by his shop is P1,000.00.Determine the number of cars he must service in one year so that he will obtain a profit of at least 20% on his investment? 2. A man formerly employed as chief mechanic of an automobile repair shop hassaved P1,000,000.00 which are now invested in certain securities giving him anannual dividend of 15%. He now plans to invest this amount in his own repair shop. Inhis resents job, he is earning P25,000.00 a month, but he has to resign to run his ownbusiness. He will need the services of the following: 2 mechanics each earning P400.00a day, and 8 helpers each earning P200.00 a day. These men will work on theaverage300 days per year. His other expenses are the following:Rental30, 000.00 a monthMiscellaneous25,000 a monthSales tax3% of gross incomeInsurance2%The length of his lease is 5 years. If the average charge for each car repaired by hisshop is P1,000.00.Determine the number of cars he must service in one year so that hewill obtain a profit of at least 20% on his investment?

Introduction:- A man who worked as the primary mechanic at an auto repair shop accumulated…

A man formerly employed as chief mechanic of an automobile repair shop has saved P1,000,000.00 which are now invested in certain securities giving him an annual dividend of 15%. He now plans to invest this amount in his own repair shop. In his resents job, he is earning P25,000.00 a month, but he has to resign to run his own business. He will need the services of the following: 2 mechanics each earning P400.00 a day, and 8 helpers each earning P200.00 a day. These men will work on the average300 days per year. His other expenses are the following: Rental 30, 000.00 a month Miscellaneous 25,000 a month Sales tax 3% of gross income Insurance 2% The length of his lease is 5 years. If the average charge for each car repaired by his shop is P1,000.00.Determine the number of cars he must service in one year so that he will obtain a profit of at least 20% on his investment?

A man formerly employed as chief mechanic of an automobile repair shop has saved P1,000,000.00 which are now invested in certain securities giving him an annual dividend of 15%. He now plans to invest this amount in his own repair shop. In his resents job, he is earning P25,000.00 a month, but he has to resign to run his own business. He will need the services of the following: 2 mechanics each earning P400.00 a day, and 8 helpers each earning P200.00 a day. These men will work on the average300 days per year. His other expenses are the following: Rental 30, 000.00 a month Miscellaneous 25,000 a month Sales tax 3% of gross income Insurance 2% The length of his lease is 5 years. If the average charge for each car repaired by his shop is P1,000.00.Determine the number of cars he must service in one year so that he will obtain a profit of at least 20% on his investment?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter2: The Deduction For qualified Business Income For Pass-through Entities

Section: Chapter Questions

Problem 3DQ

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A man formerly employed as a chief mechanic of an automobile repair shop has saved P1,000,000 which are now invested in certain securities giving him an annual dividend of 15%. He now plans to invest this amount in his own repair shop. In his present job, he is earning P25,000 per month, but he has to resign to run his own business. He will need the services of the following: 2 mechanics each earning P400 a day, and 8 helpers earning P200 a day. These men will work on average 300 days a year. His other expenses are the following: Rental = P30,000 a month Miscellaneous = P25,000 a month Sales tax = 3% of gross income Insurance = 2% The Length of his lease is 5 years. If the average charge for each car repair by his shop is P1,000. Determine the number of cars he must service in one year so that he will obtain a profit of at least 20% on his investment?
PLEASE SHOW YOUR SOLUTIONS PLEASE. THANK YOU! 1. A man formerly employed as a chief mechanic of an automobile repair shop has saved P1,000,000 which are now invested in certain securities giving him an annual dividend of 15%. He now plans to invest this amount in his own repair shop. In his present job, he is earning P25,000 per month, but he has to resign to run his own business. He will need the services of the following: 2 mechanics each earning P400 a day, and 8 helpers earning P200 a day. These men will work on average 300 days a year. His other expenses are the following: Rental = P30,000 a month Miscellaneous = P25,000 a month Sales tax = 3% of gross income Insurance = 2% The length of his lease is 5 years. If the average charge for each car repair by his shop is P1,000. Determine the number of cars he must service in one year so that he will obtain a profit of at least 20% on his investment?
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