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Home > Maths I > Numbers and Money > Profit and loss

Maths I

Profit and loss

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Calculating the percentage profit made

A man trying to hold up a tower of giant pound coins about to fall on him.

It is also possible to work out the percentage profit that is made on a deal. This is done using the profit and the price that something cost originally, before it was sold on (the Cost Price).

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

The next example shows how this is done.

Example

A hardware shop sells dustbins for £12. They originally cost £10. Find the percentage profit made.

Profit = £12 - £10

= £2.00

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

 

= {2 \over 10} \times 100 \%

 

= 20%

 

Now try this question.

Question

Calculate the percentage profit made by the owner of the same hardware shop, and paint is sold for £6 per litre, when it originally cost £4.50 per litre.

Answer

Profit = £6 - £4.50

= £1.50

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

 

= {1.5 \over 4.5} \times 100 \%

 

= {33 \frac{1}{3} \% } (i.e. {1 \over 3} of 100 \%)

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Video clip about the principles of profit and loss

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