Profit & Loss Bm Ppt

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