rockyHill
Hi Folks,
Can you please provide the definition of profit? It sounds simple, but I saw a definition and an example that got me confused. Here it is:
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Profit made on an item is the seller's price minus the costs to the seller. If a seller buys an item for $10 and sells it for $15, then the seller has made a profit of $5.
The percent of the selling price that is profit is:
(Profit/Original Selling Price) * 100% = $5/$15 * (100%)
= (100/3)% = 33 1/3 %
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Do any of you see a flaw in the above?
Appreciate your replies.
- RockyHill
Hey Rocky Hill, let me explain u the concept here clearly.
Generally profit percent is always calculated on Cost Price.
For example let's consider this question.
A man purchased an article at 30$ and sold it for 35$. Find his profit percentage.
Sol: Cost Price = 30 and Selling Price = 35
So the profit percentage is 5/30 x 100 = 16/66%
So if he just asks to calculate profit percent please always calculate on Cost Price only.
Coming to ur question he clearly mentioned profit as a percentage of Selling Price. So always calculate profit percent on Cost Price unless he asks us to calculate profit % in terms of Selling Price.
I hope this is clear
Regards,