After the initial year of operations, the Cream Company had the following data in its

operating results:
Net profit is P750,000. Selling expenses are 12.5% of sales and also equal to 25%
of cost of goods sold. Administrative expenses and other expenses are 17.5% and
5% of sales, respectively.

What is Cream’s gross profit for the year?

B .125/.25 = .50; 100% - 50% - 12.5% - 17.5% - 5% = 15%

750,000/15% = 5,000,000 x 50% = 2,500,000