Lesson
Title: Profit and Loss Percentage.
Objectives:
At the end of this lesson, you will be able to determine the profit and loss of a business.
The selling and cost price of goods at lost or profit.
What you should know :
You should be familiar with, cross-multiplication and other basic arithmetic operations.
Introduction :
Every entrepreneur's goal is to make maximum profit from the business he/she does and it's important to know how to determine whether the business is making profits or running at losses.
Presentation /Steps:
In exams or real-world scenarios, you'll be asked to solve for profit and loss in percentage of a business transaction and this formula will be used.
(selling price - cost price/cost price ) * 100.
=> From the above formula, If the result is positive, the business is making a profit but, if the result is negative the business is running at a loss.
=> You can also determine the selling or cost price of goods at profit or loss, using the following formulas.
S.P = (100 + profit/100) * cost price (at profit)
S.P = (100 - loss/100) * cost price (at loss)
C.P = 100 * selling price/100 + profit (at profit)
C.P = 100 * selling price/100 - loss (at loss)
=> S.P means selling price
=> C.P means cost price
EX 1. Find the gain or lost percent when a bag of noodles is bought for, (a) #2500 and sold for #2000, (b) #1375 and sold for #2000.
Step 1:
Using the formula:
(selling price - cost price/cost price) * 100
(a) S.P = #2000 and C.P = #2500.
=> Substitute the values into the formula.
(2000 - 2500/2500) * 100 = -20%
=> Therefore, question a is -20% loss.
(b) S.P = #2000 and C.P = #1375.
=> Substitute the values into the formula.
(2000 - 1375/1375) * 100 = 45.45%
=> Therefore, question b is 45.45 % profit.
Ex2. Find the selling price of a calculator which is bought for #1850 and sold at a profit of 10%.
Step2:
Using the formula :
S.P = (100 + profit/100) * cost price (at profit).
Where profit = 10, cost price = 1850.
=> Substitute the values into the formula.
S.P = (100 + 10/100) * 1850 = 2035.
=> Therefore, selling price = #2035.
Ex3. Find the cost of a bicycle that is sold for #1575 at a loss of 16%.
Step3.
Using the formula:
C.P = 100 * selling price/100 - loss (at loss)
Where selling price = 1575 and loss = 16
=> Substitute the values
C.P = 100 * 1575 / 100 - 16 = 1875.
=> Therefore, the cost of the bicycle = #1875.
Summary/Conclusion:
We've been able to solve problems related to profit and loss such as selling and cost price.
Please, try to solve further problems in this lesson using the above formulas.
Exercises :
1. A shovel is sold for #10000 and the seller gained 5%, how much did the shovel cost?
2. A wheelchair cost #45000 and sold at a loss of 10% calculate the selling price.