Percentage Profit and Percentage Loss

Profit can be defined as the monetary gain made from a transaction. In consumer arithmetic, a profit is made if the selling price of a product is greater than the cost price (the price at which the product was bought) of the product.

Therefore,

Profit = Selling price – Cost price

The percentage profit made from a transaction is found by using the formula below.

A loss is made from a transaction if the selling price of a product is less than the cost price.

Therefore,

Loss = Cost price – Selling price

The percentage loss made from a transaction is found by using the formula below.

Example:

The manager of a Foot Locker store buys 30 Carmelo Anthony New York Knicks jerseys for $250 each.

(a)Find the percentage profit if the jerseys are sold for $290 each.

(b)Find the percentage loss if the jerseys are sold for $245 each.

Note that the percentage profit could be found without finding the total cost and selling prices. This is shown below.

Note that the percentage loss could be found without finding the total cost and selling prices. This is shown below.