Business Math

PROFIT AND LOSS

SITUATION • Rodrigo is engaged in a buy and sell business of perfumes. He bought 10 boxes of perfumes. Each box cost P 12,000 and contains a dozen of perfume bottles. He is planning to sell one perfume bottle at P 1,500. What is his expected profit on 10 boxes of perfumes? • Given : 10 boxes of perfumes a dozen of bottles • 120 bottles bought by Rodrigo Cost of each box=P12,000 • Selling price of each perfume= P 1,500

SOLUTION • COST= 12,000(10)= P120,000 • NET SALES= 1,500(120)= P180,000 • PROFIT= NET SALES- COST

• = 180,000-120,000 • +P60,000

DRILL • 1. A price of pair socks is P200. How much is the cost of pair of socks • 2.Revenue is R= 30X , where x ,is the number of chocolate. How much is the revenue if there are 25 boxes of chocolate? • 3. If the cost of producing x units of a product is given by C= 10x, what is the cost of producing 5 units? • 4. The annual earnings (in million) of a calculator manufacturer is given by P=50x-10, how much is the profit of selling 5 calculators?

ANSWER • 1. 200(8) = P1, 600 • 2. R= 30(25)= P750 • 3.C= 10(5)= P 50 • 4. P= 50M(5)-10M = P 240 Million

ACTIVITY 1 • Thea bought one dozen smartphones for P 200,000with a discount of 5%. She sold half dozen at a price of 18,000 per unit. However, a new model of smartphones became available in the market, so she sold the remaining half dozen at P12,000 each unit. What was her profit or loss?

ANSWER • Cost of 12 dozens smartphones = P 200,000- 0.05(200,000) = P 190,000 • 6 smartphones at a price of P 18,000/pc= P 18,000(6)= P 108,000 • 6 remaining phones at a price of P12,000/pc= P 12,000(6)= P72,000 • TOTAL NET SALES= 108,000+ 72,000= P 180,000 • Loss= Cost-Net Sales = P 190,000- P 180,000 = P 10,000

ACTIVITY 2 • Jay-R bought two digital cameras at P 15,490 each. He sold one of the camera to his friend at P 13, 500, while the other one was sold to his neighbor at P 16,200. How much is Jay-R’s profit or loss

SOLUTION Cost of two digital cameras = P 15,490(2)= P 30,980 Net sales=13,500 + 16,200= P 29, 700 Loss= Cost- Net Sales –= 30,980- 29,700 –= P 1,280

ACTIVITY • Michelle went to Baguio and bought 20 jars of strawberry jam for P 3,500 with 15% discount. When she got back to Manila,she sold 10 of the jars for a total of P 1,800 and the rest at P 185 each. How much profit did Michelle gain?

SOLUTION • Cost of the 20 jars of strawberry jam= P 3,500- 3,500(.15)= P 2,975 • Net Sales: • First 10 jars= P 180 (10) • Remaining 10 jars= 185(10)= • TOTAL NET SALES= P 3,650 • Profit= Net Sales- Cost = 3,650-2,975 =P 675

= P 1,800 1,850

• To compute profit • Profit= Net Sales- Cost • Where Net sales is the amount of money received from selling good, and • Cost is the amount paid for the goods. • HOWEVER, there are cases in which net sales o goods is less than its cost, such difference is called LOSS • LOSS= COST- NET SALES • In the case when NET SALES is equal to cost, such situation is BREAK-EVEN

SOLVE THE FOLLOWING PROBLEMS • 1. Mrs Larez sold a watch to his friend at a loss of 5%. If his friend paid P 650 for it, find the original cost of the watch • 2. A mobile phone was sold for P 4,800. Find the cost price of the mobile phone if the profit is 20%?

• 3.Mark bought 18 chairs at 350 each. He sold 12 of them at 450 each , and the remaining chairs at P 300 each. Calculate the profit or loss? • 4. Find the percent gain or percent loss when a car bought for P 925,000 is sold for P 850,000.