MONEY: PROFIT AND LOSS

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

1. I bought an exercise book for $2500 and sold it for $3,200. How much profit did I make
2. An article is sold for $4,000 and the loss is $1,050. Fin the cost price of the article
3. A wrist watch is bought for $3,887 and sold for a profit of $722. Find the selling price
4. 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

RATIO AND PERCENTAGE

PROFIT AND LOSS

PROBLEM ON MULTIPLICATION OF MONEY

Money