Profit and Loss
Example # 1
A watch store owner decided to offer a 20% discount for a particular brand of watch
which sells at 35,000. By doing so, his average sales increased from 5 watches to 12 watches a
day. If he bought one watch at a price of 22,000 from the supplier, by how much was the daily
profit increased or decreased by offering such discount on the watch?
Solution:
We compute for daily profit before and after the discount was offered
Without the discount,
Profit per watch=35 000-22 000=13,000
Profit for selling 5 watch=13,000x5=65,000
With 20% discount,
New selling Price=35,000-0.2(35,000)=28,000
Profit per watch=28,000-22,000=6,000
Profit for 12 watches=6,000(12)=72,000
Increase in daily profit=72,000-65,000=7,000
Example # 2
Annie bought one dozen of smartphones for 200,000 with a discount of 5%. Half dozen
were sold at price of 18,000 per unit. However, a new model of smartphone became available in
the market, so she sold the remaining half dozen at 12,000 each unit. What was her profit or
loss?
Solution:
Cost of 12 dozens of smartphone=200,000-0.05(200,000)=190,000
Net sales:
For 6 smartphones at a price of 18,000 per piece=108,000
For 6 remaining phones at price of 12,000 per piece=72,000
Total Net Sales=180,000
Loss=Cost-Net Sales=190,000-180,000=100,000
Example # 3
Jay-R bought two digital cameras at 15,490 each. He sold one of the cameras to his friend
at 13,500, while the other one was sold to his neighbor at 16,200. How much is Jay-R’s profit or
loss?
Solution:
Cost of 2 digital cameras=15,490(2)=30,980
Net sales=13,500+16,200=29,700
Example # 1
A watch store owner decided to offer a 20% discount for a particular brand of watch
which sells at 35,000. By doing so, his average sales increased from 5 watches to 12 watches a
day. If he bought one watch at a price of 22,000 from the supplier, by how much was the daily
profit increased or decreased by offering such discount on the watch?
Solution:
We compute for daily profit before and after the discount was offered
Without the discount,
Profit per watch=35 000-22 000=13,000
Profit for selling 5 watch=13,000x5=65,000
With 20% discount,
New selling Price=35,000-0.2(35,000)=28,000
Profit per watch=28,000-22,000=6,000
Profit for 12 watches=6,000(12)=72,000
Increase in daily profit=72,000-65,000=7,000
Example # 2
Annie bought one dozen of smartphones for 200,000 with a discount of 5%. Half dozen
were sold at price of 18,000 per unit. However, a new model of smartphone became available in
the market, so she sold the remaining half dozen at 12,000 each unit. What was her profit or
loss?
Solution:
Cost of 12 dozens of smartphone=200,000-0.05(200,000)=190,000
Net sales:
For 6 smartphones at a price of 18,000 per piece=108,000
For 6 remaining phones at price of 12,000 per piece=72,000
Total Net Sales=180,000
Loss=Cost-Net Sales=190,000-180,000=100,000
Example # 3
Jay-R bought two digital cameras at 15,490 each. He sold one of the cameras to his friend
at 13,500, while the other one was sold to his neighbor at 16,200. How much is Jay-R’s profit or
loss?
Solution:
Cost of 2 digital cameras=15,490(2)=30,980
Net sales=13,500+16,200=29,700
