Business M ath:

Profit and Loss

 Today, we'll talk
about:
basic definition of terms

the difference between profit and loss

solve problems involving profit and loss

One of Ted's hobbies is knitting sweaters and hats. Since
winter is fast approaching, he decided to sell what he
created through an online shop. How can he ensure that
he will gain profit and not incur any losses?

Let's join Ted's journey as he learn about the basic

concepts of profit and loss.
 Cost Price Selling Price

vs
COST PRICE (C.P.) SELLING PRICE (S.P.)
The price at which the product is The price at which the
purchased. product is sold.
Overhead Expenses

It refers to all additional expenses such as

transportation, rent, repairs, etc.

It is always included in the total cost of the

product.
Profit
Profit is gained when the selling price is
greater than the cost price.

Profit = Selling Price - Cost Price

Profit = S.P. - C.P.
Profit Profit
Profit % = × 100
You can calculate the percentage of C.P.
profit using:
 Let's
practice!
Ted bought all the raw materials for one sweater at
$50. He sold it at $70. How much profit did he
gain?
What is his percentage of profit?
 Let's
solve it! Profit = S.P. - C.P.
Profit = $70 - $50
Profit = $20
Ted bought all the raw materials for one
sweater at $50. He sold it at $70. How
Ted gained a $20 profit.
much profit did he gain?
How about
percentage? Profit
Profit % = × 100
C.P.

$20
Ted bought all the raw materials for one Profit % = × 100
$50
sweater at $50. He sold it at $70. How
much profit did he gain? What is his Profit % = 40%
percentage of profit?
Loss
Loss is incurred if the selling price of the
product is less than the cost price.

Loss = Cost Price - Selling Price

Loss = C.P. - S.P.
Loss Loss
Loss % = × 100
You can calculate the percentage of C.P.
loss using:
 Let's
practice!
Ted plans to sell one knitted hat for $30. However,
due to certain limitations, he was only able to sell it
for $18. How much loss did he incur? What is his
percentage of loss?
 Let's
solve it!
Loss = C.P. - S.P.
Loss = $30 - $18 = $12
Ted plans to sell one knitted hat for $30.
However, due to certain limitations, he Ted incurred a $12 loss.
was only able to sell it for $18. How much
loss did he incur? What is his percentage
of loss?
How about
percentage? Loss
Loss % = × 100
C.P.

$12
Ted plans to sell one knitted hat for $30. Loss % = × 100
$30
However, due to certain limitations, he
was only able to sell it for $18. How much Loss % = 40%
loss did he incur? What is his percentage
of loss?
 Concept
Check

The ingredients for one whole pizza costs

$45. It was cut into 8 pieces and was sold
$4.50 each. Was this a profit or a loss?
Support your answer.
 Answer to

Concept
Check

The ingredients for one whole pizza costs

$45. It was cut into 8 pieces and was sold
$4.50 each. Was this a profit or a loss? It was a loss because the cost price ($45) is
Support your answer. greater than the selling price ($36).
 Let's
Review!

PROFIT LOSS

Selling Price > Cost Price Selling Price < Cost Price
 Thank you
for listening!

Reference:
CK-12. Profit, Loss, Discount and Taxes. Last Accessed October 17, 2021 from https://flexbooks.ck12.org/cbook/ck-12-cbse-maths-class-8/section/9.2/primary/
lesson/profit-loss-discount-and-taxes/
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