PROFIT AND LOSS

SITUATION
• Rodrigo is engaged in a buy and sell business of perfumes. He
bought 10 boxes of perfumes. Each box cost P 12,000 and contains
a dozen of perfume bottles. He is planning to sell one perfume
bottle at P 1,500. What is his expected profit on 10 boxes of
perfumes?

• Given : 10 boxes of perfumes a dozen of bottles

• 120 bottles bought by Rodrigo Cost of each box=P12,000
• Selling price of each perfume= P 1,500
SOLUTION
• COST= 12,000(10)= P120,000

• NET SALES= 1,500(120)= P180,000

• PROFIT= NET SALES- COST

• = 180,000-120,000
• +P60,000
DRILL
• 1. A price of pair socks is P200. How much is the cost of pair
of socks
• 2.Revenue is R= 30X , where x ,is the number of chocolate.
How much is the revenue if there are 25 boxes of chocolate?
• 3. If the cost of producing x units of a product is given by C=
10x, what is the cost of producing 5 units?
• 4. The annual earnings (in million) of a calculator manufacturer
is given by P=50x-10, how much is the profit of selling 5
calculators?
ANSWER
• 1. 200(8) = P1, 600
• 2. R= 30(25)= P750
• 3.C= 10(5)= P 50
• 4. P= 50M(5)-10M = P 240 Million
ACTIVITY 1
• Thea bought one dozen smartphones for P 200,000with a
discount of 5%. She sold half dozen at a price of 18,000
per unit. However, a new model of smartphones became
available in the market, so she sold the remaining half
dozen at P12,000 each unit. What was her profit or loss?
ANSWER
• Cost of 12 dozens smartphones = P 200,000- 0.05(200,000) = P
190,000

• 6 smartphones at a price of P 18,000/pc= P 18,000(6)= P 108,000

• 6 remaining phones at a price of P12,000/pc= P 12,000(6)= P72,000
• TOTAL NET SALES= 108,000+ 72,000= P 180,000
• Loss= Cost-Net Sales
= P 190,000- P 180,000
= P 10,000
ACTIVITY 2
• Jay-R bought two digital cameras at P 15,490
each. He sold one of the camera to his friend
at P 13, 500, while the other one was sold to
his neighbor at P 16,200. How much is Jay-R’s
profit or loss
SOLUTION
Cost of two digital cameras = P 15,490(2)= P
30,980
Net sales=13,500 + 16,200= P 29, 700
Loss= Cost- Net Sales
–= 30,980- 29,700
–= P 1,280
ACTIVITY

• Michelle went to Baguio and bought 20 jars of

strawberry jam for P 3,500 with 15% discount.
When she got back to Manila,she sold 10 of the jars
for a total of P 1,800 and the rest at P 185 each.
How much profit did Michelle gain?
SOLUTION

• Cost of the 20 jars of strawberry jam= P 3,500- 3,500(.15)= P

2,975
• Net Sales:
• First 10 jars= P 180 (10) = P 1,800
• Remaining 10 jars= 185(10)= 1,850
• TOTAL NET SALES= P 3,650
• Profit= Net Sales- Cost
= 3,650-2,975
=P 675
• To compute profit
• Profit= Net Sales- Cost

• Where Net sales is the amount of money received from

selling good, and
• Cost is the amount paid for the goods.
• HOWEVER, there are cases in which net sales o goods is
less than its cost, such difference is called LOSS
• LOSS= COST- NET SALES
• In the case when NET SALES is equal to cost, such
situation is BREAK-EVEN
SOLVE THE FOLLOWING PROBLEMS
• 1. Mrs Larez sold a watch to his friend at a loss of 5%. If his friend
paid P 650 for it, find the original cost of the watch
• 2. A mobile phone was sold for P 4,800. Find the cost price of the
mobile phone if the profit is 20%?
• 3.Mark bought 18 chairs at 350 each. He sold 12 of them at 450
each , and the remaining chairs at P 300 each. Calculate the profit
or loss?
• 4. Find the percent gain or percent loss when a car bought for P
925,000 is sold for P 850,000.