The cost of a tablecloth is 72% of its selling price. find the approximate profit percentage.

We will learn how to calculate profit and profit percent.

If selling price is more than the cost price (S.P. > C.P.), there is a profit.

Profit = S.P. – C. P.          

or, S. P. = P + C. P.           

C.P. = S. P. – P  

Profit percent → profit on $ 100 is called profit%

Profit% is always calculated on C.P

So, profit% = \(\frac{Profit}{C.P.}\) x 100

Solved examples:

Jack purchased 400 calculators at $200 each. He spent $5 on packing each calculator, paid $100 to the carrying for loading and $400 on transportation. He sold 300 at a rate of $280 each and 100 at the rate of $180 each. Find his profit or loss per cent in the whole transportation.

Solution:             

C.P. of 1 calculator = $200

C.P. of 400 calculators = $200 x 400

                                 = $80000

Money spent on packing 1 calculator = $5

Money spent on packing 400 calculators = $400 x 5 = $2000

Overhead expenses = $(2000 + 100 + 400)

                             = $2500

C.P. of 400 calculators = Actual C.P. + Overhead expenses

                                 = $80000 + $2500

                                 = $82500

S.P. of 400 calculators = S.P. of 300 calculators + S.P. of 100 calculators

S.P. of 1 calculator = $280

S.P. of 300 calculators = $280 x 300 = $84000

S.P. of 1 calculator = $180

S.P. of 100 calculators = $180 x 100 = $18000

S.P. of 400 calculators = $84000 + $18000 = $102000

S. P. > C. P., there is profit, therefore, profit – S.P. – C.P.

Profit = $(102000 – 82500) = $19500

Profit% = \(\frac{Profit}{C.P.}\) x 100

           = \(\frac{19500}{82500}\) x 100%

           = 23.6%

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CINDY SMITH

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Sep 3, 2002, 9:09:49 AM9/3/02

to

Here's a percentage problem. "Goods cost a merchant $72. At what
price should he mark them so that he may sell them at a discount of
10% from his marked price and still make a profit of 20% on the
selling price?"

As I understand it, 72 = 80%(x) so x = 90 dollars. Now, 90 = 90%y, so
y = 100 dollars.

So, to make a profit of 20% on 72 you must mark it up to 90 dollars.
If you're selling a 90 dollar dress for 10 percent off the actual
price, then the price is 90% of some dollar value y which equals 90
dollars, so the actual selling price is 100 dollars. Checking,
10%*100 = 90. 90 - 90*20% = 72.

I'm trying to figure out how to write this in a different way so that
I understand percentages better. If I understand it right,
x - 20%x = 72 so 80%x = 72 so x = 72/80% so x = 90 (the 20% profit).
Now, you're selling the dress for 10% off y dollars so 90%y = x.
Since x = 90, then 90%y = 90 so y = 90/90% so y = 100.

Do I have this straight?

Thanks.

--

Cindy Smith I have further observed under the sun that
The race is not won by the swift,
Nor the battle by the valiant;
Nor is bread won by the wise,
Me transmitte sursum, Nor wealth by the intelligent,
Caledoni! Nor favor by the learned.
A Real Live Catholic For the time of mischance comes to all.
in Georgia! -- JPS Ecclesiastes 9:11

Brian VanPelt

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Sep 3, 2002, 8:40:19 AM9/3/02

to

Cindy:

My comments are inserted into your post.

"CINDY SMITH" <> wrote in message
news:...

> Here's a percentage problem. "Goods cost a merchant $72. At what
> price should he mark them so that he may sell them at a discount of
> 10% from his marked price and still make a profit of 20% on the
> selling price?"
>

This might be a good place to use a variable. Since you are using x, so
will I. I will
let x be the marked price. With this notation we have

The 10% discount of the marked price can be represented by (90%)x = .9x
The 20% profit from the $72 cost will be: 72 + 72(20%) = 72*1.2 = 86.4

See if that helps any.

Brian

Rich Carreiro

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Sep 3, 2002, 12:20:43 PM9/3/02

to

"Brian VanPelt" <> writes:

> > Here's a percentage problem. "Goods cost a merchant $72. At what
> > price should he mark them so that he may sell them at a discount of
> > 10% from his marked price and still make a profit of 20% on the
> > selling price?"

[snip]

> The 20% profit from the $72 cost will be: 72 + 72(20%) = 72*1.2 = 86.4

And therein lies the problem. I don't think the sentence means what
you wrote. I think it means that the profit is 20% of the selling
price. But I'll agree your interpretation is quite valid. Badly
worded problem.

--
Rich Carreiro

Rich Carreiro

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Sep 3, 2002, 12:19:17 PM9/3/02

to

(CINDY SMITH) writes:

> Here's a percentage problem. "Goods cost a merchant $72. At what
> price should he mark them so that he may sell them at a discount of
> 10% from his marked price and still make a profit of 20% on the
> selling price?"

Here's how I would do it...

Let m be the marked price. Then 0.90m is the
selling price. Then the absolute profit is
0.90m - 72. That much is clear.

The problem I see is that "make a profit of 20% on
the selling price" is somewhat ambiguous (to me). Does it
mean the profit is 20% of the selling price or does
it mean the profit is 20% of the cost? I don't know.

Anyhow, I'll do it both ways.

If we take it to mean "make a profit of 20% of the selling
price", then we set the absolute profit equal to 20% of
the selling price, or 0.20(0.90m). So we have:
0.90m - $72 = 0.20(0.90m)
0.90m - $72 = 0.18m
0.72m = $72
m = $100

If we take it to mean "make a profit of 20% of the cost",
then we set the absolute profit equal to 20% of the cost,
or 0.20(72), giving us:
0.90m - $72 = 0.20($72)
0.90m = 1.20($72)
m = $96

--
Rich Carreiro

Doug Magnoli

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Sep 3, 2002, 5:26:54 PM9/3/02

to

Profits are generally calculated as a fraction of what was spent. If you
buy a thing for $72 and sell it for $90, you wouldn't say you'd made an
($18) / ($90) = 20% profit, you'd say you'd made an ($18)/($72) = 25%
profit.

If you bought a thing for $10 and sold it for $1000, would you call that a
$900/$1000 = 90% profit? I think most of us would call it a $900 / $10 =
9000% profit.

So I'd have set the problem up a little differently from Cindy's
original. By saying that $72 = 80%*x, you're saying that $72 represents a
20% discount from something. But what you're looking for instead is for x
to represent 20% more than $72, i.e., x = 1.2*$72.

The discount part you got right: if the vendor is selling at a 10%
discount, that means that the buyer will pay 90% of the marked price. So
the price you're looking for is such that:

0.9*x = 1.2 * $72

x = (1.2/0.9) * $72

x = 4/3 * $72

x = $96.

-Doug Magnoli
[Delete the two and the three for email.]

Rich Carreiro

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Sep 3, 2002, 9:35:14 PM9/3/02

to

Doug Magnoli <> writes:

> If you bought a thing for $10 and sold it for $1000, would you call that a
> $900/$1000 = 90% profit? I think most of us would call it a $900 / $10 =
> 9000% profit.

Well, I'd call it a 9000% markup, anyways.

In the business world, profit margins are very
often stated as a %age of *revenue* (or of sales),
so it would not be uncommon to talk about a
90% profit in your example.

--
Rich Carreiro

Jon Miller

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Sep 4, 2002, 12:25:04 AM9/4/02

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Doug Magnoli wrote:

>Profits are generally calculated as a fraction of what was spent.
>

The World Is A Very Big Place. Profits are frequently calculated as a
percentage of gross sales. If the profit goal is 10% of sales, then it
makes sense to price individual products so that the profit is 10% of
the sale price.

Jon Miller

Jon Miller

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Sep 4, 2002, 12:27:23 AM9/4/02

to

CINDY SMITH wrote:

>Here's a percentage problem. "Goods cost a merchant $72. At what
>price should he mark them so that he may sell them at a discount of
>10% from his marked price and still make a profit of 20% on the
>selling price?"
>
>As I understand it, 72 = 80%(x) so x = 90 dollars. Now, 90 = 90%y, so
>y = 100 dollars.
>
>So, to make a profit of 20% on 72 you must mark it up to 90 dollars.
>If you're selling a 90 dollar dress for 10 percent off the actual
>price, then the price is 90% of some dollar value y which equals 90
>dollars, so the actual selling price is 100 dollars. Checking,
>10%*100 = 90. 90 - 90*20% = 72.
>
>I'm trying to figure out how to write this in a different way so that
>I understand percentages better. If I understand it right,
>x - 20%x = 72 so 80%x = 72 so x = 72/80% so x = 90 (the 20% profit).
>Now, you're selling the dress for 10% off y dollars so 90%y = x.
>Since x = 90, then 90%y = 90 so y = 90/90% so y = 100.
>
>Do I have this straight?
>

Yup. And you explain it to your boss whatever way they want it.

Jon Miller

CINDY SMITH

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Sep 4, 2002, 5:14:32 AM9/4/02

to

In article <>, Doug Magnoli
<> writes:

> Profits are generally calculated as a fraction of what was spent. If you
> buy a thing for $72 and sell it for $90, you wouldn't say you'd made an
> ($18) / ($90) = 20% profit, you'd say you'd made an ($18)/($72) = 25%
> profit.

> If you bought a thing for $10 and sold it for $1000, would you call that a
> $900/$1000 = 90% profit? I think most of us would call it a $900 / $10 =
> 9000% profit.

> So I'd have set the problem up a little differently from Cindy's
> original. By saying that $72 = 80%*x, you're saying that $72 represents a
> 20% discount from something. But what you're looking for instead is for x
> to represent 20% more than $72, i.e., x = 1.2*$72.

> The discount part you got right: if the vendor is selling at a 10%
> discount, that means that the buyer will pay 90% of the marked price. So
> the price you're looking for is such that:

> x = $96.

I agree with another poster that the question is worded poorly. FWIW,
the book says the answer is $100.

> -Doug Magnoli

Rich Carreiro

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Sep 4, 2002, 4:24:59 AM9/4/02

to

(CINDY SMITH) writes:

> I agree with another poster that the question is worded poorly. FWIW,
> the book says the answer is $100.

In other words, the book is taking the interpretation
of "make a profit of 20% on the selling price" to mean
"make a profit equal to 20% of the selling price", which
is what I'd expect in the business world.

Still, it really should have been worded better.

--
Rich Carreiro

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