Cambridge International Mathematics

Topics in arithmetic (Chapter 10) 211

We use money nearly every day, so we need to understand profit, loss and discount.

Profit is an example of anincrease. Loss and discount are examples of adecrease.

Aprofitoccurs if the selling price ishigherthan the cost price.

Profit=selling price¡cost price

Alossoccurs if the selling price islowerthan the cost price.

Loss=cost price¡selling price

MARK UP AND MARK DOWN

If a purchase price ismarked upthen it is increased, and aprofitwill be made.

If a purchase price ismarked downthen it is decreased, and alosswill be made.

Example 1 Self Tutor

A camera is purchased forE 650 and is marked up by20%.

Find: a the profit b the selling price.

a Profit= 20%of cost price

= 20%ofE 650

= 10020 £E 650

=E 130

b Selling price

=cost price+profit

=E650 +E 130

=E 780

Example 2 Self Tutor

A pair of board shorts was bought for$35. They were marked down

by20%and sold in an end-of-summer clearance. Find:

a the loss b the selling price.

a Loss

= 20%of cost price

= 20%of$35

= 10020 £$35

=$7

b Selling price

=cost price¡loss

= $35¡$7

= $28

EXERCISE 10B.1

1 Estelle bakes loaves of bread for her bakery. If a loaf of bread costsE 1 : 40 to make, and sells forE 2 : 90 ,

find her profit on the sale.

2 Greg built a wooden table which he sold forE 148. He calculated that the cost of building the table was

E 176. Find his profit or loss on the sale.

B PROFIT AND LOSS [1.8]

Marked up by

means

by.

20%

increased 20%

Marked down

means

by.

20%

20%

decreased

IGCSE01

cyan magenta yellow black

(^05255075950525507595)
100 100
(^05255075950525507595)
100 100
Y:\HAESE\IGCSE01\IG01_10\211IGCSE01_10.CDR Tuesday, 23 September 2008 2:56:23 PM PETER