PROFIT AND LOSS

PERCENTAGES
LET’S RECAP BEFORE
WE MOVE ON
REMEMBER

• Profit is amount of money made when the SELLING PRICE is more than the COST PRICE.

•  
• Loss is the amount of money not earned when the COST PRICE is more the SELLING PRICE.
WHAT IS PROFIT PERCENTAGE?

• Businesses are created with the intent to make a profit. But sometimes
representing it using just the monetary value (The value using dollars) isn’t
effective. Sometimes we want to know the fraction of money earned in
•  comparison to the amount of money paid for the item.

• So we represent our profit as a percentage.

EXAMPLE
Ms. Sally bought icicles for $10.00 a bag. She made a profit of $5.00 off of one bag.
Calculate the percentage profit she made.
SOLUTION:
Profit= $5.00; Cost Price= $10.00
•  
PRACTICE QUESTIONS

1. Mr. Allen bought a chair for $80 and when he sold it he made a
profit of $50. Calculate the percentage profit.
2. Computers Limited is a company that buys computers to resell. If
they buy a MacBook Pro for $3500.00 and sold it for $5775.00,
calculate
a) The profit made
b) The profit percentage
WHAT IS THE LOSS PERCENTAGE?

• It is the representation of the amount of the fraction of money lost when the
selling price is less than cost price.
•  
EXAMPLE
Veronica bought an iPhone 8 two years ago for $1,500. When she sold it last week, she made a loss of
$700. Calculate the percentage loss.
SOLUTION:
Loss= $700 Cost Price= $1500

•  
PRACTICE QUESTIONS

1. Meshca bought a laptop one year for $3500 and sold it with a loss
of $1000. Calculate the loss percentage.
2. Runners Limited is a car company which sells used cars. They
bought an Evo for $55,000 however, the car’s engine was
damaged and they sold the car for $40,000. Calculate:
a) The loss
b) The percentage loss