Grade Six Mathematics
Hello Boys and Girls! it’s wonderful to have you back. I hope you all had a fantastic week. In our previous session, we delved into the realm of percentages. Today, our focus shifts to the intriguing world of Consumer Arithmetic.
Consumer Arithmetic
To begin with, let’s explore the meanings of a few key terms related to the concept of consumer arithmetic:
Profit (P) - The profit is the amount gained by selling an article at a price greater than its cost price.
Loss (L) - The amount the seller incurs after selling the product for less than its cost price is mentioned as a loss.
Cost Price (CP) - The amount paid for a product to purchase is called a cost price.
Selling Price (SP) - The amount for which the product is sold is called the Selling Price. Also, sometimes called a sale price.
Now, boys and girls, let’s examine the concept of calculating profit.
Profit
To calculate the profit, we use the following formula:
Formula:
Profit= Selling price – Cost Price
Example 1
A shopkeeper sells a bag for $500 whose cost price is $200. Find the profit gained by the shopkeeper.
Solution: Given Cost Price = $200
And Selling Price = $500
From the formula of profit, we know,
Profit = Selling Price – Cost Price Therefore:
P = $500 – $200
P = $300
Therefore, the shopkeeper gains $300 from the business.
Got it! If not, carefully review the example above.
Ok, boys and girls, let’s now examine the opposite of gaining a profit! Do you know what that is?
That’s right! Loss
Loss
What is a loss?
As we discussed before, a seller’s loss occurs when they sell an item for less than what it costs them to acquire it.
Formula:
Loss = Cost Price - Selling Price.
Example 1
If a bag is bought for $200 and it is sold for $80, calculate the loss.
Loss = Cost price - Selling price.
...
Cost Price= $200
Selling Price= $80
Loss = 200 - 80
= 120
Therefore, there is a loss of $120 in the transaction.
Ok boys and girls, let us put what we have learned into practice by calculating the profit and loss in the following activity.
Exercise 1
1. 2. 3. 4. 5. 6. 7.
A TV was bought for $1,800 and sold for $3400. Calculate the profit or loss.
A second-hand car which was bought for $3500 was sold for $2,250. Calculate the profit or loss.
Jane sold her necklace for $360 which was bought for $239. Calculate the profit or loss.
Joy bought a dozen of pens for $500. She sold it for 15 each. Calculate the profit or loss.
A fruit vendor bought 600 apples for $4,800. He then sold them for $3500. Calculate the profit or loss.
Five books are bought for $62 and sold for $13.60 each. Find the profit made.
Derek bought cloth for $800. He spent $200 for stitching a shirt. He sold the shirt for $1175. Find the profit.
I hope you enjoyed working on those problems!
Let us move on…
We’ll now examine the concept of calculating the selling price.
Selling Price
Formula:
Selling price = Cost Price + Profit
Example
Lila purchased a chair for $500. She sold it at a profit of $200. Find the selling price of the chair.
Selling Price of the chair = $700.
Now, boys and girls, let’s look at how the cost price is calculated.
Cost Price
Keep in mind, the cost price of a product is the amount paid to purchase it.
Formula:
Cost Price= Selling Price- Profit
Example
The selling price of a book is $460 and the profit earned by the shopkeeper is $60. Find the cost price of the book using the cost price formula.
Solution:
Here, selling price = $460 and profit = $60 Using the cost-price formula, we get
CP = Selling Price - Profit
= $(460 - 60)
= $400
Answer: The CP of the book is $400
Ok boys and girls, let’s work on some problems where we calculate the profit, loss, selling price, or the cost price of various items.
Exercise 2
As our final activity, let us complete the table below, using the various formulae examined above: