PROBLEMS ON FINDING PROFIT AND LOSS

Example 1 :

Giovanna makes cakes for her ‘Home-made Cakes’ shop. If a cake costs €2.10 to make and she sell it for €3.70. Find her profit or loss on the sale.

Solution :

The cost price of the cake  =  €2.10

The selling price of the cake  =  €3.70

Because the selling price of the cake is greater than the Cost price, there is a profit.

Profit  =  Selling price – Cost price

=  3.70 – 2.10

Profit  =  €1.6

Example 2 :

Alain knitted a jumper which he sold for $135. He calculated that the cost of jumper, including his time spent, was $160. Find his profit or loss on the sale.

Solution :

The cost price of the jumper  =  $160

The selling price of the jumper  =  $135

Because the selling price of the jumper is less than the Cost price, there is a loss.

Loss  =  Cost price – Selling price

=  160 – 135

Loss  =  $25

Example 3  :

Brad bought an old car for ₤600. He spent ₤1038 restoring it and sold it for ₤3500. Find his profit or loss on the sale.

Solution  :

The total amount spent on the car is

=  (600 + 1038)

=  ₤1638

The cost price of the car  =  ₤1638

The selling price of the car  =  ₤3500

Because the selling price of the car is greater than the Cost price, there is a profit.

Profit  =  Selling price – Cost price

=  3500 – 1638

Profit  =  ₤1862

Example 4  :

Julie bought a house for €170000. She spent €6000 having the house repainted, €7800 on new carpets, and €2040 on curtains. A year later she sold the house for €189000. Find her profit or loss on the sale.

Solution :

 The total amount spent on the house is

=  €(170000 + 6000 + 7800 + 2040)

=  €185840

The cost price of the house  =  €185840

The selling price of the house  =  €189000

Because the selling price of the house is greater than the Cost price, there is a profit.

Profit  =  Selling price – Cost price

=  189000 – 185840

Profit  =  €3160

Example 5 :

At the start of summer, Joe bought 200 beach umbrellas at $25 each to sell from his beach-side cafe. Unfortunately for joe it was not a very hot summer. He only sold 128 umbrellas at $39 each. Find his profit or loss on the sale of umbrellas for that summer.

Solution :

The cost price of 1 umbrella  =  $25

Now, the cost price of 200 umbrellas  =  $25 × 200

=  $5000

The selling price of 1 umbrella  =  $39

Now, the selling price of 128 umbrellas  =  $39 × 128

=  $4992

Because the selling price of the umbrellas is less than the Cost price, there is a loss.

Loss  =  Cost price – Selling price

=  5000 – 4992

Loss  =  $8

Number of umbrellas remaining  =  200-128

=  72

Remaining number of umbrellas is 72.

Example 6 :

A retailer buys forty pairs of running shoes for a total price of $3400. He then sells the shoes for $123.25 per pair. Calculate the total profit and express this profit as a percentage of the cost price.

Solution :

Cost price = $3400

Selling price of each shoe = $123.25 per pair

Number of running shows = 40

Selling price of 40 shoes = 40(123.25)

= 4930

Profit = Selling price - cost price

= 4930 - 3400

= 1530

Profit percentage = (profit / cost price) x 100%

= (1530/3400) x 100%

= 45%

Example 7 :

Prior to Oktoberfest, a department store orders 2000 painted beer steins for $4.60 each. In the first week it sells 1450 of the steins for $12.20 each, and in the second week the rest are placed on special at $8.85. At the end of the second week 50 steins remain unsold. Determine the total profit, and express this profit as a percentage of the cost price.

Solution :

Cost price of 2000 steins = 4.60 (2000)

= 9200

Amount received in the first week = 1450(12.20)

= 17690

Number of steins sold in the second week

= 2000 - 1450 - 50

= 500

Amount received in the second week = 500 (8.85)

= 4425

Selling price = 17690 + 4425

= 22115

Profit = Selling price - cost price

= 22115 - 9200

= 12915

Profit percentage = (profit / cost price) x 100%

= (12915/9200) x 100%

= 1.403 x 100%

= 140.3%

Example 8 :

Jacki bought a sewing machine for $560 and sold it for a profit of 18%. At what price did she sell the sewing machine?

Solution :

Cost of sewing machine = $560

Profit of 18%

100% price = 560

Including profit of 18%, we get

= 118% of 560

= 1.18(560)

= 660.8

So, the selling price is $660.8

Example 9 :

A greengrocer bought 200 kg of oranges for $180 and sold them for $1.14 per kilogram. Find :

a) his profit

b) his percentage profit on the cost price.

Solution :

Quantity of greengrocer = 200 kg

cost price of them = $180

Selling price = $1.14 per kg

Selling price of 200 kg of oranges = 200(1.14)

= 228

a) Profit = selling price - cost price

= 228 - 200

= $28

b) Profit percentage = (profit / cost price) x 100%

= (28/200) x 100%

= 0.14 x 100%

= 14%

Example 10 :

A dress was bought for $160 and sold for $136. Find the percentage loss on the cost price.

Solution :

Cost price = $160

Selling price = $136

Since the selling price is lesser than cost price, it must be loss.

Loss = Cost price - Selling price

= 160 - 136

= 24

Loss percentage = (loss / cost price) x 100%

= (24/160) x 100%

= 15%

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