Learn about the concept of Profit and Losses

2. Rodrigo is engaged in a buy-and-
sell business of perfumes. He bought
10 boxes of perfumes. Each box costs
₱12,000 and contains a dozen of
perfume bottles. He is planning to sell
one perfume bottle at ₱1,500. What is
his expected profit or loss on 10 boxes
of perfume?

3. The ultimate goal of any business
whether a retail or wholesale is to earn
a profit. Getting the difference between
the amount of money earned from
selling 10 boxes gives the profit/loss.

4. Give of 10 boxes of perfumes contain a
dozen of bottles
~120 bottles bought by Rodrigo
~Cost of each box = ₱12,000
~Selling Price of each perfume
= ₱1,500

5. To solve the problem, we compute
first the cost of
10 x 12 = 120 bottles.
Since each box costs ₱ 12,000
and Rodrigo bought 10 boxes,
we get
Cost = 12,000(10) = ₱120,000

6. Rodrigo can expect that the net
sales he will get upon selling 10 boxes
consisting of 120 bottles is
Net sales = 1,500(120) = ₱180,000.

7. Thus, he has
= Net Sales – Cost
= 180,000 – 120,000
= ₱60,000
(PROFIT)

8. The difference between what a
merchant invests into business and
what he receives in return is called
Profit. To compute for profit, we use
Profit = Net Sales – Cost
Where Net Sales is the amount of
monthly received from selling gods,
and Cost is the amount paid for the
goods.

9. However, there are cases in which
the Net Sales of goods is less than its
cost, such difference is called loss. We
can express loss mathematically as,
Loss = Cost – Net Sales
In the case when Net Sales is
equal to Cost, we call such situation as
break-even.

10. Jay-R bought two digital cameras
at ₱15,490 each. He sold one of the
cameras to his friend at ₱13,5000,
while the other one was sold to his
neighbor at ₱16,200.
How much is Jay-R’s profit or loss?

11. Cost of 2 digital cameras
= (15,490)(2) = ₱30,980
Net Sales
= 13,500 + 16,200
(Friend) (Neighboor)
= ₱29,700

12. Thus, he has
= Cost – Net Sales
= 30,980 – 29,700
= ₱1,280
(LOSS)

13. A watch store owner decided to
offer a 20% discount for a particular
brand of watch that 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 price of ₱22,000 from the supplier,

14. by how much was the daily profit
increased or decreased by offering
such discount on the watch?
We Compute for the daily profit
before and after the discount was
offered

15. Without the discount
Profit per watch
= 35,000 – 22,000
= ₱13,000
Profit for selling 5 watches
= 13,000(5) = ₱65,000

16. With 20% discount,
New selling price
= 35,000 - .2(35,000) = ₱28,000
Profit per watch
= 28,000 – 22,000 = ₱6,000
7,000

17. Profit for 12 watches
= 6,000(12) = ₱72,000
Increase in daily profit
= 72,000 – 65,000 = ₱7,000

18. Annie bought one dozen
smartphones for ₱200,000 with a
discount of 5%. She sold half a dozen
at a price of ₱18,000 per unit.

19. 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?

20. Cost of 12 dozens of smartphones
= 200,000 - .05 (200,000)
= ₱190,000

21. Net Sales:
For 6 smartphones at a price of
₱18,000 per piece
= 18,000(6) = ₱108,000
For 6 remaining phones at a price of
₱12,000 per piece
= 12,000(6) = ₱72,000

22. We Compute for the daily profit
before and after the discount was
offered
Without the discount