PROFIT

& LOSS
Melody Neypes
Marjorie Aglibot
What is profit?

PROFIT
• The difference between what a merchant
invests into business and what he receives in
return.

• Benefit or gain.
NET SALES
• Amount of money received from selling goods.

COST
• Amount paid for goods.

LOSS
• If the Net Sales of goods is less than its cost.
TO COMPUTE FOR PROFIT,
PROFIT= NET SALES – COST

TO COMPPUTE FOR LOSS,

LOSS= COST- NET SALES
EXAMPLE:
A watch store owner decided to offer a 20%
discount for a particular brand of watch that sells
at 35,ooophp. By doing so, his average sales
increased from 5 watches to 12 watches a day. If
he bought one watch at a price of 22,000php
from the supplier, by how much was the daily
profit increased or decreased by offering such
discount on the watch?
SOLUTION:
We compute for the daily profit before
and after the discount was offered.
Without discount,
Profit per watch= 35,000-22,000
=13,000php
Profit for selling 5 watches= 13,000(5)
=65,000php
With 20% discount,
New selling price=35,000-0.2(35,000)
=28,000php
Profit per watch=28,000-22,000
=6,000php
Profit per 12 watches=6,ooo(12)
=72,000php
Increase in daily profit=72,000-65,000
=7,000php
 TRY THESE EXAMPLES:

Annie bought one dozen smartphones for

200,000php with a discount of 5%. She sold half
dozen at a price of 18,000php per unit. However, a
new model of smartphone became available in the
market, so she sold the remaining half dozen at
12,000php each unit. What was her profit or loss?
SOLUTION:
Cost of a dozens of smartphones
=200,000-0.05(200,000)
=190,000php
Net sales:
For 6 smartphones at a price of 18,000php
per piece= 18,000(6)=108,000php
For 6 remaining phones at a price of
12,000php per piece =12,000(6)= 72,000php
Total net sales
=108,000+72,000
=180,000php

LOSS=COST-NET SALES
=190,000-180,000
=10,000php
 PROBLEM:
Greg bought a laptop for
28,000php and spent 2,500php
on its spares. He later sold it for
25,000php. How much is Greg’s
loss?
SOLUTION:
LOSS=COST-NET SALES
Cost= 28,000+2,500
=30,500php
Loss=30,500-25,000
=5,500php
 PROBLEM:
Alden went to Alaminos and bought
25 packs of pili nuts for 875php with
10% discount. When he got back to
Agno, he sold 15 packs for 675php, and
the rest at 40php each. How much
profit did Alden gain?
SOLUTION:
COST:875(.10)=87.5
875-87.5=787.5
NET SALES:15 packs for 675php
10packs(40php)
=400php
PROFIT=NET SALES-COST
=787.5-400
=387.5php
 PROBLEM:
Arman sold a watch to his
friend at a loss of 5%. If his
friend paid 650php for it, find
the original cost of the watch.
SOLUTION:
Let cost price: 100php
As there is 5% loss so, 100-5=95
Let cost price be x
Now make proportions as
100/x=95/650
Cross multiply
95x=100(650)
95x/95=650,000/95
x=684.21