Profit and

Loss
 OBJECTIVES

1. Differentiate profit from a loss;

2. Solve for the profit; and
3. illustrate how profit is obtained and how to avoid loss
in a given transaction
KEY TERMS
Selling price - is the amount the product is being sold or service rendered.
Sales - is the total product sold or service rendered for a given period (e.g., daily,
weekly, monthly, annually). It can be illustrated in quantity or in peso.
Cost -is the amount paid by the business for the good or service it is going to sell.
Profit -is what remains of the selling price or sales after deducting all the costs
and expenses of the good or service. It is represented in peso terms.
Loss -occurred when the sales are less than the cost of goods or services.
 PROFIT or LOSS?
Please study the sample problem
 A group of ABM students was tasked to sell cookies
during a business simulation. They sold 20 packs of
cookies for Php 60 each pack. The cost of each pack is
. Php 45
How much are the total sales of cookies?

Solution:
Sales = no. of cookies sold x selling price
Sales = 20 packs x Php 60/pack
Sales = Php 1,200

The total sales of 20 packs of cookies is Php 1,200.

How much profit did they get for one pack?

Solution:
Profit = selling price – cost
Profit = Php 60 – Php 45
Profit = Php 15

For every pack of cookies sold, they have a profit of Php 15

How much is their total profit?

Solution:
Total Profit = profit x no. of packs sold
Profit = Php 15 x 20 packs
Profit = Php 300

The total profit for 20 packs of cookies is Php 300.

Suppose they only sold 10 packs, did they gain profit or
incurred loss?
Solution: Loss = sales – cost
Sales = 10 packs of cookies x Php 60 Loss = Php 600 - Php 900
Sales = Php 600 Loss = (Php 300)
Cost = Php 900

The cost of cookies is greater than its sales, therefore, there is

a loss of Php 300
During a Midnight Madness Sale, a board game regularly priced at
PhP8,500 was sold at 55% discount. The cost of the board game is
PhP3,450 and expenses are 14% of the regular selling price.
1. Determine whether a profit was earned or it incurs a loss
2. Determine how much was her profit or loss.
Solution: CTOTAL = C+E
100% - 55% = 45% = 3450 + 0.14 x 8500
= Php 4,640
SP = 0.45 x S
= 0.45 x 8500 = Php 3,825 P = SP - CTOTAL
The sale price of the board game is = 3825 0 4640
Php 3,825 = - Php 815

The loss made on the sale was Php 815.