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. … Read More »MONEY: PROFIT AND LOSS