MEANING OF PROFIT
When the selling price of an article is higher or greater than the cost price, we have a profit or gain.
Profit = selling price – cost price
MEANING OF LOSS
When the selling price is less than cost price we have a loss.
Loss = cost price – selling price
EXAMPLE 1
If a clock is bought for $1,145 and sold for $1,170, what is the gain or losss
Solution
Cost price of clock = $1,145
Selling price = $1, 170
Since the selling price is more than the cost price, we have a profit
Profit = $1,170 – $1,145 = $25
EXAMPLE 2
By selling a tin of oil for $1,320, a man made a profit of $150. How much did he pay for it?
Solution
Selling price = $1,320
Profit = $150
Cost price = $1,320 – $150 = $1,170.
EXERCISE
- I bought an exercise book for $2500 and sold it for $3,200. How much profit did I make
- An article is sold for $4,000 and the loss is $1,050. Fin the cost price of the article
- A wrist watch is bought for $3,887 and sold for a profit of $722. Find the selling price
- A trader bought a dozen candles for $1,020 and sold them all at $960. What is the profit or loss of each candle?
See also
SIMPLE PROBLEMS ON PERCENTAGES
PROBLEM ON MULTIPLICATION OF MONEY
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