Topic Content:
- Profit and Loss
Profit and Loss:
1. Profit = Selling price (S.P.) – Cost Price (C.P)
2. Loss = Cost Price (C.P.) – Selling Price (S.P.)
Where;
Selling price: Selling price is the price at which a good or service is sold.
Cost Price: Cost price is the price at which a good is bought.
When S.P. > C.P., a profit is made
When C.P. > S.P., a loss is made
3. Percentage profit = \( \frac{Profit}{Cost \: Price}\scriptsize \: \times \: 100 \% \)
4. Percentage loss = \( \frac{Loss}{Cost \: Price}\scriptsize \: \times \: 100 \% \)
5. Profit = Percentage \(\scriptsize \: \times \: \) Cost price
Example 1.5.1:
A farmer buys an animal for ₦40 000 and sells it for ₦33 000. What is the percentage loss?
Solution
C.P. = ₦40 000
S.P. = ₦33 000
Loss = ₦40 000 – ₦33 000
= ₦7000
Percentage loss = \( \frac{Loss}{Cost \: Price}\scriptsize \: \times \: 100 \% \)
= \( \frac{7,000}{40,000}\scriptsize \: \times \: 100 \% \)
= \( \frac{7,\not{0}\not{0}\not{0}}{40,\not{0}\not{0}\not{0}}\scriptsize \: \times \: 100 \% \)
= \( \frac{7}{40}\scriptsize \: \times \: 100 \% \)
= \( \frac{700}{40}\% \)
= \( \frac{70\not{0}}{4\not{0}}\% \)
= \( \frac{70}{4}\scriptsize \% \\ = \frac{35}{2}\scriptsize \% \\ = \scriptsize 17 \frac{1}{2} \% \\ = \scriptsize 17.5 \% \)
Example 1.5.2:
Find (i) the profit or loss and (ii) the selling price, for these cost prices.
(a) ₦400, profit 20%
(b) ₦375, loss 8%
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