Answer the following problem. Show solution and box the answer.

1. Amiya spends P64,200.00 to order various merchandise online. The shipping fee is 10% of the total cost of what Amiya ordered. If she wants to have a 40% markup based on cost, how much should be the selling price for all of her merchandise?

2. Convert the given income statement into a common-size income statement.

Shiranui Spare Parts and Repair Shop Income Statement For the Current Month Net Sales 84,000.00 Less: Cost of Sales 50.400.00 Gross Profit 33.600.00 Less: Operating Expenses Salary Expense 5,000.00 Delivery Expense 2,200.00 Supplies Expense 1,245.00 Utilities Expense 2,743.00 11, 188.00 Less: Other Expenses 2.450.00 Net Profit 19,962.00