BUSINESS MATHEMATICS

PROFIT and LOSS

 OBJECTIVES
• Differentiate profit from
loss
• Illustrate how profit is
obtained and how to avoid
loss in a given transaction
 REVIEW:
A. Determine whether the following statement shows a profit or
loss situation.
1.) Ben bought a pen at P 10 each and sold it for P 12.
2. )Martha bought a scientific calculator at P2,000. When a new
and upgraded model was released after 2 months, she sells her
scientific calculator for P1,200 to buy the new one.
3.) A banana cue vendor gains P100 for selling it at P10 per stick.
4. The cost of 10 pieces personalized calendar is P 850 and it was
sold for P150 each.
5.) Joy bought a 16gb memory card at P600 and decided to sell it
to her sister for P650.
 Activity:
Leah bought one dozen of smartphones
for P 200, 000 with a discount of 5%.
Half dozen were sold at a price of
P 18,000 per unit. However, new model
of smartphone became available in the
market, so she sold the remaining half
dozen at P 12, 000 each unit. What was
her profit or loss?
 RUBRICS
Steps to Success Points Your Points

Correct Solution 5

Solution labeled 5

Calculations 5
Correct
Organization and 5
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 What is Profit?
• The difference between what a merchant
invests into business and what he receives in
return is called profit.
• To compute for profit, we use
Profit = Net Sales – Cost
Where Net Sales is the amount of money
received from selling goods, and Cost is the
amount paid for the goods.
 What is Loss?
• It is the case in which the Nets Sales of goods
is less than its cost .
• We can exress loss mathematically as,
Loss = Cost – Net Sales

* In the case when Net Sales is equal to Cost, we

call such situation as break-even.
 Exercise

• Jay-R bought two digital cameras

at P 15, 490 each. He sold one of
the camera to his friend at
P13,500, while the other one sold
to his neighbor at P16,200. How
much is Jay-R’s profit or loss?
 PROBLEM SOLVING
Answer the following problem in a ½ sheet of paper.
1.) Greg bought a laptop for P28,000 and spent
P2,500 on its spaces. He later sold it for P25,000.
How much is Greg’s profit or loss?
2.) Alden went to Bicol and bought 25 packs of pili
nuts for P875 with 10% discount. When he got back
to Manila, he sold 15 packs for P675, and the rest at
P40. How much profit did Alden gain?
 Assignment:

• What is Markup?
• What is Markdown?
Thank
You!!!