Profit & LossNumber – Consumer Maths

By the end of this lesson you will be able to explain and identify the following:1. Profit2. Percentage Profit3. Loss 4. Percentage Loss

Profit & LossWhen a retailer calculates the price to be

marked on an article, many overhead costs must be taken into account:

staff wages, rent, store improvements, electricity, advertising and so on.

Profit is the difference between the total of the retailer’s costs (cost price) and the price for which the goods actually sell (selling price).

If costs exceed selling price, a loss is made.

Profit1. Profit = selling price – cost2. 100% x

costprofit Profit Percentage

$13.95

15.00-28.95 Profit

A music store buys CDs at $15 each and sells them for $28.95 each. What is the percentage profit made on the sale of a CD?

93%

100% x 15.0013.95

Profit %

Loss1. Loss = cost – selling price2.

$2500

5000-7500 Loss

Mario sells he’s Honda for $5000. He brought it for $7500. Calculate the percentage loss?

%31

33

100% x 75002500

Loss %

100% x costloss

Loss Percentage

Selling PriceA. Selling price = (100% + percentage profit) of cost

price= (100% + percentage profit) × cost

price

B. Selling price = (100% − percentage loss) of cost price

= (100% − percentage loss) × cost price

Worked Example