Profit and loss
You are going to revise -
A profit is made when something is sold for more than it cost to buy. It is the money made on a deal. When money is lost on a deal, it is called a loss.
To work out how much profit is made on something you have to first find out how much it cost, then how much it was sold for. The difference between these two is the profit, or loss.
Have a look at the example below.
A greengrocer bought 8 bunches of grapes for £6.24 and was able to sell them all for £1.20 per bunch. How much profit did the greengrocer make?
Selling price = 8 x £1.20
Profit = £9.60 - £6.24
The same greengrocer also bought 32 bunches of bananas for £19.20. He sold 24 bunches for 90p each and 3 more for 45p. He had to throw the others away. How much profit or loss was made on the bananas?
Selling price = (24 x 90p) + (3 x 45p)
= £21.60 + £1.35
Profit = £22.95 - £19.20
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