# Math - Percent Profit and Loss

by AMANDA
(JAMAICA)

A A SHOPKEEPER BUYS 25 BALLS FOR \$150.00

HE SELLS THEM FOR \$8.00 EACH.

WHAT IS HIS PERCENTAGE PROFIT?

B IF HE SELLS THEM FOR \$5.00 EACH WHAT WOULD HIS PERCENTAGE LOSS BE.

THANK YOU & GOD BLESS

### Comments for Math - Percent Profit and Loss

 Sep 16, 2013 Percent by: Staff Answer Part I A percent of change is the ratio of the change in the original amount divided by the original amount (the decimal quotient is multiplied by 100 to convert the decimal into a percent). When this ratio is positive it represents a percentage increase. When this ratio is negative it represents a percentage decrease. However, this definition can be slightly different where a business is concerned: Profit Margin = ((Gross Profit) / (Revenue)) * 100 or Profit Margin = ((Revenue - Cost of Goods Sold) / (Revenue)) * 100 The Profit Margin is also called the Margin on Sales. Please notice that the denominator in this equation is Revenue rather than the Cost of Goods Sold. If we were to use the general definition of percentage change, the denominator would be the Cost of Goods Sold (the original amount). -------------------------------------------------

 Sep 16, 2013 Percent by: Staff ------------------------------------------------- Part II On the other hand, the Gross Profit Margin does express the profit margin as a percentage of the cost of goods sold (the original amount). Gross Profit Margin = ((Revenue - Cost of Goods Sold) / (Cost of Goods Sold)) * 100 The Gross Profit Margin is commonly referred to as the Markup . [A] PERCENTAGE PROFIT Calculating Profit Margin Profit Margin = Revenue - Cost of Goods Sold Cost of Goods Sold = \$150 Sales = \$8.00 * 25 BALLS = \$200 Profit Margin in % = (Gross Profit / Revenue) * 100 therefore Profit Margin = ((Revenue - Cost of Goods Sold) / Revenue) * 100 Profit Margin in % = ((\$200 - \$150) / \$200 ) * 100 Profit Margin in % = 25 % -------------------------------------------------

 Sep 16, 2013 Percent by: Staff ------------------------------------------------- Part III Gross Profit Margin (the Markup) = ((Revenue - Cost of Goods Sold) / (Cost of Goods Sold)) * 100 Gross Profit Margin in % = ((\$200 - \$150) / \$150 ) * 100 Gross Profit Margin in % = 33 ⅓ % [B] PERCENTAGE LOSS When the cost of goods sold is greater than the revenue, this difference represents a loss. Percentage Change = ((Revenue - Cost of Goods Sold) / (Cost of Goods Sold )) * 100 Cost of Goods Sold = \$150 Sales = \$5.00 * 25 BALLS = \$125 Percentage Change = ((Revenue - Cost of Goods Sold) / (Cost of Goods Sold )) * 100 Percentage Change = ((\$125 - \$150) / \$150) * 100 Percentage Change = -16 ⅔ % Percentage Loss = 16 ⅔ % Thanks for writing. Staff www.solving-math-problems.com