MATHEMATICS
Hello boys and girls,
Welcome back. I trust that you had a splendid week. Last week we looked at the calculation of percentages. This week we will examine the concept of Profit and Loss.
Firstly, let us examine the definitions of some terms associated with the concept of profit and loss.
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.
Profit
Formula:
Profit= Selling price – Cost Price
How do we calculate the profit?
Example 1
A shopkeeper sells a bag for $200 after acquiring it at a cost price of $150. Find the profit gained by the shopkeeper.
Solution: Given Cost Price = $150
And Selling Price = $200
From the formula of profit, we know,
Profit = Selling Price – Cost Price
P = $200 – $150
P = $50
Therefore, the shopkeeper gains $50 from the business.
Do you understand? If not, carefully review the example above.
Okay 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 examined earlier, a seller’s loss is the sum that results from selling the item for less than the item’s cost price.
Formula:
Loss = Cost Price - Selling Price.
Example 1
If a bag is bought for $20 and it is sold for $17, calculate the loss.
Loss = Cost price - Selling price.
Cost Price= $20
Selling Price= $17
.
.. Loss = 20 - 17 =3
Therefore, there is a loss of $3 in the transaction.
Okay boys and girls, let us put what we have learnt into practice by calculating the profit and loss in the following activity.
Exercise 1
1. Amelia bought ingredients worth $180 and made burgers. If she sold the burgers for $240, what is the profit value?
2. A man buys a laptop for $540 and sells it for $615. Calculate profit.
3. Find the loss or profit when a clock is bought for $235.50 is sold for $187.25.
4. Five books are bought for $62 and sold for $13.60 each. Find the profit made.
5. Derek bought cloth for $800. He spent $200 for stitching a shirt. He sold the shirt for $1175. Find the profit.
6. The cost of a cycle is $950 and that of a scooter is $23,500. John sold them together for $25,000. Find his profit.
I hope you enjoyed working those problems!
Let us move on…
We’ll now examine how we can calculate the selling price
Formula:
Selling price = Cost Price + Profit
Example
Lila purchased a chair for $257. She sold it at a profit of $120. Find the selling price of the chair.
Cost Price of a chair = $257
Profit
Selling Price
Selling Price of the chair = $377.
Now, boys and girls, let’s look at how the cost price is calculated.
Cost Price
Remember, a product’s cost price is the price paid to purchase it.
Formula
= $120 = Cost Price + Profit = $257 + $120 = $377
Cost Price = Selling Price- Profit
Example
The selling price of a toy is $340 and the profit earned by the shopkeeper is $60. Find the cost price of the toy using the cost price formula.
Solution:
Here, selling price = $340 and profit = $60
Using the cost price formula, we get
CP = Selling Price - Profit = $(340 - 60)
= $280
Answer: The CP of the toy is $280
Okay boys and girls, let’s practice solving a few problems where we determine the selling price and the cost price of some items.
Exercise 2
1. A cycle was bought for $1225 and sold at a gain of $100. Find the Selling Price of the cycle.
2. A radio is bought at $550 and sold at a profit of $35 after spending $20 on its repairs. Find the Selling Price.
3. A refrigerator is sold at $10525 at a profit of $ 925. What was the Cost Price of the refrigerator?
4. A book seller sold 50 books for $890.00 and earned a profit of $ 90.00. Find the Cost Price of 50 books.
5. Ron bought a cycle for $800 and sold it at a loss of $160. What is his selling price?
6. Jack bought a car for $50,000. He spent $5000 on repairs. He sold the car at a profit of $5000. At what price did he sell the car?
Good job, boys and girls!
As our final activity, let us complete the table below, using the various formulae examined above:
That’s all for today, boys and girls.
For the solutions to this week’s problems, check back next week. In our next session, we’ll continue to examine the concept of profit and loss, however, we’ll focus on the percentage aspect of same.
Until next week, goodbye!