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Buying price, selling price, profit, and loss
In daily life we often buy or sell products or goods. In such an activity we recognize the terms buying price, selling price, profit, and loss. To understand them, look at the following situation.
What are you going to learn?
To do a simulation related to social arithmetic in daily economic activities. To calculate total value, value perunit, and part of value. To determine the amount and percentage of profit, loss, selling price, buying price, discount, net, tax, interest in economic activities.
A trader buys rice for Rp 2,500.00 per kg. Then he sells it for Rp 2,750.00 per kg. In this case we say that the buying price is Rp 2,500.00 per kg and the selling price is Rp 2,750.00 per kg. Thus, the amount of money for buying a product or goods is called the buying price, while the price at which a product or goods is sold is called the selling price. a. When is someone said to make a profit and when TO have a loss? b. When a trader sells his goods with a price more than the buying price, what does he make?
• • • • •
buying price selling price profit loss percentage
c. But, if he sells them less than the buying price, what does he have? d. Formulate the relationship among profit, loss, and Figure 4.15 selling and buying prices.
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Profit = selling price - buying price Loss = buying price - selling price
In a trade, how do we determine the selling price, buying price, and profit/loss if information on the two of them is known? To understand it, do the following problems.
A seller of fruits buys “rambutan” for Rp 2,750.00 per kg. Then he sells it for Rp 3,000.00 per kg. a. What does he make? Profit or loss? b. In such a case, how many rupiahs does he make?
Figure 4.16 Amir buys a chicken for Rp 17,500.00, and then sells it for Rp 16,000.00. What does he make? Profit or loss? How much does he make?
Bu Ida sells a jewelry for Rp 450,000.00 and she makes a profit of Rp 25,000.00. How much did she par for the jewelry?
A seller of bikes bought a bike for Rp 210,000.00. But this
bike needs repairing before being sold. The cost for its repair is Rp 50,000.00. For what price did he sell the bike if, in fact, he had a loss of Rp 12,500.00?
160/Student’s Book – Linear Equations and Inequalities with One Variable
The problems above lead us to a conclusion that if in a trade we make a profit, then :
Selling price = ………… + …………
Buying price = ………… – …………
If in a trade we have a loss, then
Selling price = ………… – ………… Buying price = ………… + …………
Percentage of a profit or a loss with respect to a buying price
In daily life a profit or a loss is sometimes represented by a percent.
Suppose that Pak Rudi had a loss of 10% from selling cars, while in selling motorbikes he made a profit of 15%. In this case Pak Rudimade a loss of 10% with respect to the buying price of those cars and made a profit of 15% with respect to the buying price of motorbikes.
Ahmad bought a radio set for Rp 100,000.00. A few days later he sold it to his friend for Rp 115,000.00. What percent did he make a profit?
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Pak Ali bought a lamb for Rp 400,000.00. For some reason he sold it for Rp 350,000.00. What percent did he make a loss? After you have done problem 1 and problem 2, you can conclude that:
profit Percent of a profit = buying price loss Percent of a loss = x 100% x 100%
Next, give an example of a sale process involving certain buying and selling prices. Then find its percent of the profit/loss.
Calculate the buying/selling price for a given percent of a profit/loss
Look at the following situation. A buyer bought a bookshelf for Rp 150,000.00. To make a profit of 18%, how much should this shelf be sold?
To solve this problem we first have to compute the profit in rupiah as follows.
162/Student’s Book – Linear Equations and Inequalities with One Variable
Remember that the profit of 18% means 18% of the buying price. Hence, Profit = 18% x Rp 150,000.00 =
18 x Rp 150,000.00 100
= Rp 27,000.00
Thus, you know how much the bookshelf should be sold.
Next, look at the following problem.
A computer seller said that the cost of assembling a set of a computer was Rp 2,250,000.00. After the computer was sold he had a loss of 15%. What was the selling price of this sold computer? To solve this problem we have to compute the loss first. A loss of 15% means 15% of the buying price. Hence, Loss = 15% x Rp 2,250,000.00 =
15 x Rp 2,250,000.00 = Rp 33,750.00 100
Thus, the selling price of the computer is
Rp 2,250,000.00 + Rp 337,500.00 = Rp 2,587,500.00
Next, look at the above problem.
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A rice grocer sold 20 kg of rice for Rp 56,000.00. In this transaction he made a profit of 12%. What was the buying price per kg? Solution : Given the profit = 12% Let the buying price = 100%, then the selling price = 100% + 12% = 112%.
Since we know the selling price, the profit can be calculated as follows. Profit =
profit (%) × selling (rupiah) buyingprice(%)
12% × Rp 560,000.00 112%
= Rp 60,000.00
Thus, the buying price of 20 kg of rice = Rp 60,000.00 The buying price of 1 kg of rice is Rp 3,000.00
A fruit shop bought watermelons for Rp 2,500.00 per kg. Because of some damage, the shop had a loss of 6%. What was the selling price of that watermelon per kg?
A rice grocer sold 50 kg of rice for Rp 150,000.00. He got a loss of 5%. What was the buying price of the rice per kg?
164/Student’s Book – Linear Equations and Inequalities with One Variable
Next, give an example about a sale process with two given prices among selling and buying prices, and profit/loss (in rupiah/percent). Then find the unknown one.
Calculation involving discount, tax, net, tare, and bonus
In a trade we know terms such as discount, gross, net, tare and bonus. Here we shall consider each of them.
At the end of the year or at other celebration events, many shops usually offer a discount to attract new buyers. A discount is also called price cutting. Thus a discount is equivalent to a price reduction given to customers.
Last year Ida went to a department store for 1 suit of Rp 135,000.00. How much did she pay for it if the department store gave her a 25% discount?
(Note: A 25% discount means 25% of the buying price.)
a) How much money was for the discount? b) How much money did she pay for this suit?
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Think it out . A suit is put on sale at 20% off the
regular price. The regular price was Rp 270,000.00. How much is the sale price Ida has to pay?
2. Tax When we buy something, usually the price which is to be paid includes what so-called tax. Such a tax sometimes is included in the price. This kind of tax is called Value Added Tax (Pajak Pertambahan Nilai = PPN) and the amount of tax is given by the government, that is, 10%. In addition, one who earns a wage is also to pay some tax. This tax is so-called withholding tax or income tax (Pajak Penghasilan abbreviated PPh), the amount of which is determined by the government, that is, 15%.
Now look at the following example.
Almost all prices attached at the supermarket “BETA” have not included PPN at 10% yet. If Pak Mega bought a television how much did he pay for it? Solution : PPN 10% = 10% x Rp 1,500,000.00 = Rp 150,000.00 Thus the amount of money that Pak Mega had to pay for the TV set was = Rp 1,500,000.00 + Rp 150,000.00 set for Rp. 1,500,000.00,
166/Student’s Book – Linear Equations and Inequalities with One Variable
= Rp 1,650,000.00
Think it out. If Pak Amin collected his income Rp 2,000,000.00 and was drawn for tax at 15%, how much did he receive?
3. Gross, Net, Tare, and Bonus A grocer received a shipping of 20 rice bags from BULOG. Each bag contains this written information: Gross 100 kg Net 98 kg
Using a scale the employees weigh the bag again and find: a. Weight of rice is 98 kg, and b. Weight of the bag is 2 kg. Knowing this information the grocer is satisfied since the information matches with the true weight of the rice, what can you infer from this situation? The gross weight of rice contained in a bag is the total weight of rice together with the bag. The net weight of rice in a bag is the weight of the rice only (without the weight of the bag). The difference between gross and net weights is called tare or weight reduction.
Thus, we can say that
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Gross − net = tare A fruit grocer bought 3 boxes of apples for Rp 840,000.00. Written in each box; Gross 40 kg Net 35 kg
The grocer then sold the apples for Rp 8,500.00 per kg. Did he make a profit or a loss? What percent was the profit/loss? Solution : Buying price = Rp 840,000.00 Total weight of apples = 3 x 35 kg = 105 kg Selling price of apples per kg = Rp 8,500.00 Total selling price = 105 x Rp 8,500.00 = Rp 892,000.00 Since the selling price was greater than the buying price, the grocer made a profit. Profit = Rp 892,000.00 - Rp 840,000.00 = Rp 52,500.00 Percent of the profit =
52,500 × 100% = 6,25% 840,000
A firm motivates the employees to achieve the best performance. To this end, the firm offers some amount of money to those who show the best performance. Such an amount of money offered is called bonus.
168/Student’s Book – Linear Equations and Inequalities with One Variable
To celebrate the “Lebaran”, Fia went to a clothing store for a coat of Rp 200,000.00. How much did Fia pay for it if the store gave a 35% discount? (Note: A 35% discount means 35% of the normal buying price)
A fruit grocer bought 5 boxes of orange for Rp 1,380,000.00. Written in each box;
Gross 50 kg Net 46 kg
The grocer then sold them again for Rp 5,750.00 per kg. Did he make a profit or a loss? What percent was the profit/loss?
Calculation using percent in problems of savings and cooperation
You know that when we save some amount of money in a bank, in a certain period of time we receive an interest. he interest rate varies from bank to bank.
To digest the meaning, solve the following problems.
Ifah saves her money Rp 1,000,000.00 in a bank at a simple interest rate of 15% per year. (An interest rate
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is said to be simple if the rate remains unchanged from time to time.)
Find the amount of interest given to Ifah at : a. the end of the first year b. the end of the fifth year c. the end of the third month d. the end of the tenth month
A farmer borrowed Rp 3,000,000.00 from KUD with the monthly interest rate of 1%. If he wants to pay it back 15 times, how much does he pay each month?
170/Student’s Book – Linear Equations and Inequalities with One Variable
1. A kind of good product is bought Rp 11,000.00 and then is sold again. Determine the profit obtained if it was sold for: a. Rp 12,500.00 b. Rp 11,775.00
2. Amin purchased a radio set for Rp 135,000.00 and then sold it again. Determine the loss if it was sold for :
a. Rp 128,500.00
b. Rp 131,750.00
3. Pak Ali sold a car for Rp 45,000,000.00.
Determine the buying price if : a. he made a profit of Rp 2,050,000.00 b. he got a loss of Rp 1,500,000.00
4. Suppose a seller bought 20 kg of sugar for Rp 4,500.00 per kg. The sugar was then sold for Rp 3,750.00 per kg. During the selling activity he found 2 kg sugar is damaged and useless. Did he make profit or loss? How much? 5. Pak Amat bought 10 watermelons for Rp 60,000.00. He wanted a profit of Rp 10,000.00. For what price should Pak Amat sell each of the watermelons?
6. Someone bought eggs for Rp 7,500.00 per kg. All these eggs were then sold for Rp 7,750.00. If he
wanted to sell 15 kilograms with the same buying price, how much profit would he get?
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7. Pak Ahmad bought 10 chickens for Rp 15,000.00 each. After selling these chickens he got a loss of Rp 10,000.00. What was the selling price he made for each chicken? 8. A fruit shop sold 20 kilograms of apples for Rp 9,000.00 per kg. From this selling it made a loss of Rp 40,000.00 because some of the apples were damaged and unsold. How much money did the shop spend for each kilogram of those apples?
9. Find the selling price if : a. buying price of Rp 17,500.00, profit of 10% b. buying price of Rp 25,000.00, loss of 11% c. buying price of Rp 250,000.00, profit of 9% d. buying price of Rp 375,000.00, loss of 6%
10. A buyer bought a used-bicycle for Rp 300,000.00 and then sold it with a profit of 15%. What was its selling price?
11. A trader sold a unit of a production for Rp 75,000.00. He made a profit of 25%. What was the buying price? 12. A book shop bought 50 writing books. The shop wanted a profit of 12 1 %. All of the books were sold 2 out and it collected Rp 90,000.00. price of those 50 books. Find the buying
172/Student’s Book – Linear Equations and Inequalities with One Variable
13. Once upon a time Pak Amir bought a new bike. For some reason the bike was sold for Rp 212,500.00, but he had a loss of 15%. What was the buying price of that bike? 14. A fruit grocer sold “rambutan” for Rp 2,700.00 per kg and knew that he had a loss of 10%. What was the buying price if he sold 50 kg of “rambutan”?
15. A buyer bought a bike for Rp 150,000.00. He then sold it for Rp 180,000.00. What percent did he make the profit?
16. Pak Udin bought 500 coconuts for Rp 2,000.00 each. Because of low demand, the price of those 500 coconuts was down to Rp 875,000.00. How much was the loss? Represent it in percent.
17. A school shop bought 2 boxes of writing books for Rp 54,000.00 per box. Each box consisted of 50 books. Then each book was sold to students for Rp 1,350.00. Find : a. buying price c. profit
b. selling price
d.percent of the profit
4. Ibu Rita purchased one dozen of bags for Rp 52,500.00 840,000.00. profit/loss? per bag. Later percent she did sold she all for Rp the
18. A school shop bought 8 sheets of multiplex for Rp
36,750.00 per sheet, and paid Rp 6,000.00 for the shipment. Every sheet was divided into 16 equal parts for
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a handy craft-making class. Then each part was sold to the students for Rp 2,400.00 per piece. a. What was the buying price for those 8 sheets of
multiplex? b. c. What was the selling price? Did the school shop make a profit or a loss?
Give the amount of the profit or loss. d. loss. Find the corresponding percent of the profit or
19. Ifah went shopping for the preparation of the Lebaran. She bought a hand bag for Rp 35,000.00, a
pair of shoes for Rp 50,000.00 and a coat for Rp 105,000.00. How much did she pay for these items if the store gave a 15% discount?
20. A shoe seller bought one dozen pairs of shoes for Rp 600,000.00. Since he paid them in cash he received a 15% discount. a. How much did he pay? b. If he wanted a 25% profit, how much should he sell each pair?
21. The shop owner “Bahagia” received a shipping of 10 bags of flour for Rp 39,000.00 per bag. Written in each bag : Gross Net 20 kg 19,5 kg
174/Student’s Book – Linear Equations and Inequalities with One Variable
Find the profit made if the flour was sold Rp 2,400.00 per kg, and each bag was sold for Rp 500.00.
22. A building material shop bought 1 box of nails for Rp 99,000.00. a. If the box and nails inside it weighed 100 kg and a
1,5% tare, what was the net weight? b. If the nails were retailed for Rp 1,100.00 per kg,
what was the profit? 23. A school foundation offers a bonus to each of its teachers with 100% of attendance. The bonus is 2,5% of his/her monthly wage. What is a teacher’s income for the month if his/her attendance is 100% and his/her monthly wage is Rp 450,000.00? 24. A bookshop bought 500 Science books, and 1,000 mathematics books from a publisher. Each Science book cost Rp 5,400.00 and each mathematics book cost Rp 6,600.00. The publisher gave a 15% discount to the book shop. How much did the bookshop pay for the books?
25. Calculate the simple interest of a savings account Rp 150,000.00 for 1½ years, if the amount of interest obtained per year is : a. 12% b. 16% c. 13% d. 16.5% e. 15%
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