Let us see about Profit and Loss. If the selling price is higher than the cost price, the result is profit.


If the selling price is lower than the cost price, the result is loss.


If the selling price is equal to the cost price, the result is neither profit nor loss.


Profit = Selling Price – Cost Price


Cost Price + Profit = Selling Price


Loss = Cost price – Selling Price


Selling Price + Loss = Cost price


Example : 1


A seller of calculators buys calculators at the rate $125 per calculator and sells the same calculators for $135 per calculator. What is his profit?


The selling price of the calculator = $135


The cost price of the calculator = $125


Since the selling price is higher than the cost price, there is profit.


Profit = Selling Price – Cost Price


Profit = $135 – $125 = $10


Profit = $10


Example : 2


A seller of calculators buys calculators at the rate $90 per calculator and sells the same calculators with the profit margin of 20%. What is his profit per calculator? What is the selling price of a calculator?


The cost price of the calculator = $90


Profit margin = 20%


20% of 90 is margin.


20% of 90 = (20/100) x 90 = (20 x 90) / 100 = 1800 / 100 = 18


Profit margin per calculator = $18


Cost Price + Profit = Selling Price


$90 + $18 = $108


The selling price of a calculator = $108.


Example : 3


A seller of calculators buys calculators at the rate $55 per calculator and happens to sell the same calculators for $45 per calculator. What is his profit or loss?


The selling price of the calculator = $45


The cost price of the calculator = $55


Since the selling price is lower than the cost price, there is loss only.


Loss = Cost price – Selling Price


Loss = $55 – $45 = $10


Loss = $10


Example : 4


A seller of calculators buys calculators at the rate $110 per calculator and sells the same calculators for $121 per calculator. What is his profit margin in percentage per calculator?


The selling price of the calculator = $121


The cost price of the calculator = $110


Since the selling price is higher than the cost price, there is profit.


Profit = Selling Price – Cost Price


Profit = $121 – $110 = $11


Profit = $11


Profit = (11/110) x 100 = (11x100) / 110 = 1100/110 = 10


Profit margin in percentage = 10%







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