For example, if an establishment’s sales are $12,000 for a

week and the labor cost is $4,000 for the same week,
then the labor cost percentage for that week is 33.3
percent:
The cost of goods sold is computed at P5,000,
while sales is equivalent to 20% higher than the
cost of Goods Sold. How much is the profit?

= 5,000 (cost of Goods sold) x .20 = 1,000

total sales = 5,000 + 1,000 = 6,000
Profit = 6,000 (Sales) - 5,000 ( Cost of Goods
Sold) = 1, 000
The selling price of adobo per serving is 20%
higher than its cost which is computed at 100.
How much is the selling price?

= 100 (cost of adobo per serving) x .20 = 20

(mark up)
selling Price = 100+20 =P120
Determine the cost of goods sold if sales are
P100,000 and the profit is 20% of the sales.

Profit= 100, 000 (Sales) x .20 (to solve the

Profit) = 20, 000 (Profit)
Cost of Goods = 100, 000 - 20,000 = 80, 000