12 Profi t (P) = Selling price (SP) – Cost price (CP)
Percentage profi t = Profi t _________ Cost price × 100%
Profi t margin = 2. Loss WORKED EXAMPLE Calculating percentage loss
NAMA bought a hotel for €540 000 in 2010 and sold it in 2013 for €400 000. NAMA has made a loss (L): €540 000 – €400 000 = €140 000 The loss L = CP – SP = €140 000 Percentage loss (%L) = 140 000
_______ 540 000 × 100% = 25·9%
This percentage loss is also known as percentage discount.
Loss (L) = Cost price (CP) – Selling price (SP) Percentage loss (%L) = Loss
_________ Cost price × 100%
EXAMPLE 1
In a sale a shop gives a discount of 40% on the original price of a bicycle. If the sale price is €168, fi nd the original price.
Solution SP = €168 = 60% of CP
CP = €168 _____
0·6 = €280 EXAMPLE 3
A furniture store has a New Year’s sale in which there is a 20% discount on all items less than €1000 and a discount of 30% on all items that are priced at €1000 or more. Ms Rice buys a table for €700, a bed for €1200 and a sideboard for €1000. How much does she pay for all three items?
Solution
Cost of table = €700 × 0⋅8 = €560 Cost of bed = €1200 × 0⋅7 = €840
Cost of sideboard = €1000 × 0⋅7 = €700 Total spend = €560 + €840 + €700 = €2100
EXAMPLE 2
A retail games store buys game consoles from a wholesaler for €180 each. The store marks up the price by 62%. What is the selling price of a console?
