Profit and Loss

Profit:

A profit is an amount of money added to the original price.
The price with the added profit is more expensive than the original price.

Useful rules are:

• Profit = Percent Profit × Original Price
• Price with Profit = Original Price + Profit
• Percent Profit = Profit ÷ Original Price × 100

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Example One - Price with Profit

A t-shirt store makes a profit of 35%. What is the price with profit for a t-shirt whose original price is $20?

Answer (Long method):
Profit
= Percent Profit × Original price
= 35% × $20
= $7

Price with profit
= Original Price + Profit
= $20 + $7
= $27

Answer (Short method):
The original price is 100%.
If the profit is 35%, then the price with profit = 100% + 35% = 135%.
Price with profit
= 135% of $20
= $27

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Example Two - Finding Percent Profit

If a car keyless entry remote ("beeper") is lost, the replacement cost is $80. However, the cost of the software by the supplier is $10. What is the profit? What is the percent profit?

Answer:
Profit
= $80 – $10
= $70

Percent Profit
= Profit ÷ Original Price × 100
= $70 ÷ $10 × 100
= 700%

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Example Three - Finding Original Price

A profit of 30% is equal to $26. What was the original price?

Answer:
Price with Profit
= 100% + 30%
= 130%

Original Price
= $26 × 100 ÷ 130
= $20

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Loss:

A loss is an amount of money subtracted from the original price.
The price minus the loss is cheaper than the original price.
The calculations for loss are the same as for discount.