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PROFIT AND LOSS.

104.

PROFIT AND LOSS is a commercial term which means

the gain and loss arising from business transactions.

NOTE 1. - The profit or loss is found by comparing the cost of the goods with the selling price, and is usually regarded as being at a certain % on cost. This subject is, then, but a business application of the principles of Percentage. The cost is the Base; the gain or loss is the Percentage; and the selling price is the Amount or Difference, Amount, if the goods are sold at a gain; Difference, if they are sold at a loss.

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NOTE 2. – The gross cost is the first, or net cost plus all expenses of the purchase, and is taken as the base or cost on which to compute the gain or loss. The net selling price is the selling price minus all expenses. The difference between gross cost and net selling price is the gain or loss.

105. To aid the pupil a few simple rules are given. It is not intended that each problem given shall be solved by one of these rules alone, for some problems may call for the use of several rules, and when to use them is left to the pupil's acuteness in comprehending the conditions of the question.

Before working an example a study of the statements in all their relations to each other must be made. Application of the principles of book-keeping will often help to secure correct results and the pupil is advised to adopt this method as outlined in the following example.

EXAMPLE.

Purchased coal at wholesale at $4.20 per ton (long ton) and sold it for $5.00 a ton (short ton). What was the gain and gain %?

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106. PROFIT AND LOSS is that part of Percentage which treats of gains and losses. The difference between the cost of an article and the amount received for it is the Gain or Loss.

107. The Cost is the Base. The Rate % of Gain or Loss is the Rate. The Gain or Loss is the Percentage. The Selling Price or Cost plus the Gain is the Amount. The Selling Price or the Cost minus the Loss is the Difference.

108. Given Cost and Rate % to find Gain or Loss.. FORMULA.

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-

-Cost X Rate % = Gain or Loss.

RULE. Multiply the Cost by the Rate %, and the product will be the Gain or Loss.

109. Given Cost and % of Gain or Loss to find the Selling Price.

FORMULA.- Cost

100% + Gain
100% LOSS

=

Selling Price.

Selling Price. Selling Price.

RULE. Cost multiplied by 100% + the Gain

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110. Given Cost, Gain or Loss to find Rate.

FORMULA. - Gain or Lost Cost Rate %.

RULE.

Divide the Gain or Loss (reduced to hundredths) by

the Cost, and the quotient will be Rate % of Profit or Loss.

111. Given Gain or Loss and % of Gain or Loss to find Cost.

FORMULA.
RULE.

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Divide the Gain or Loss by the Rate % and the quotient will be the Cost.

112. Given Selling Price and Rate % of Gain or Loss to find the Cost.

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RULE.

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Divide the Selling Price by 100% plus the Rate % of

Gain, or 100% minus the Rate % of Loss, and the quotient will be the Cost.

EXAMPLES.

113. 1. If I buy cloth at $4.50 per yd. and sell it at 20% loss, what is my selling price?

2. Bought hats at $30 per doz. and sold them at 25% profit. What was the selling price per hat?

3. A house and lot cost $4500, and was sold at 8% loss. What was the selling price?

4. Sold dry goods at a loss of $350. The rate of loss was 31%. What was the cost? What was the selling price?

5. Melons that cost $7.50 per 100 were sold at 12c. apiece. What was the gain % if 10% of them were lost by decay?

6. Bought a horse for $450, and sold him for $500. What was my gain %?

7. Sold a horse that cost $500 for $450. What was my loss %?

8. I sell goods at a profit of 15% and make $85.45. What is my cost? Selling price?

9.

How much is the loss on goods sold at $1680.80 at a loss of 16%?

10.

Tea is bought at 374c. per lb. At what price must it be sold to gain 20%?

11. My marked price is 30% above cost and I allow 121% discount on sales. What is my % of gain?

12. By selling goods for $150 I lose 16%. At what price should I sell them to gain 163%?

13. Flour sold at $6.50 nets me a profit of 30%. What would be my % of gain or loss if sold at $6?

14.

Sold a carriage for $90 at a gain of 123%, and with the proceeds purchased another which I sold at 10% loss. What was my gain or loss % by both transactions?

15. I buy books at a discount of 40% from list price. What % do I gain by selling at list price?

16. Slates cost $11.52 per gross, less 10% and 1%. At what price per doz. should they be sold to gain 333% ?

17. My retail price of fans is $2.50 each, by which I gain 25%. I sell the same quality of fans at wholesale at $33 per

doz., less 12% and 12%. Do I gain or lose at wholesale prices? How much per fan?

18. A coal dealer purchased coal at wholesale at $4.20 per long ton and retailed it by the short ton at $5. What was his gain %?

19. Bought 5 bbls. kerosene oil, each containing 58 gals., at 7c. per gal., paid drayage $1.45, and retailed it at a gain of 66%. What did I get per gal.?

20. A stationer bought 3 bundles of paper at $2 per ream, and retailed it at the rate of 3 sheets for 2c. What was his gain %? Total gain?

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21. A fruit dealer bought 120 crates of fruit at 90c. crate, and sold 30 crates at $1.20 per crate, 20 crates at $1.15 per crate, 50 crates at $1.25 per crate, 10 crates at cost, and threw away the remainder as worthless. What was his total

gain and gain %?

22. A sold a store to B for $9468, at a loss of 10%. B expended $1000 in repairs, and sold it for 10% more than A paid for it. Find A's loss and B's gain.

23. Sold 20% of a lot of flour at 20% loss and the remainder at 20% gain. What was the cost of the flour if my total gain was $96.48? What was the amount of sales? 24. A grain dealer purchased 1500 bu. corn at 65c. per bu., and 900 bu. oats at 334c. per bu. He sold 66% of the corn at a loss of 20% and the balance at a gain of 114%. What should he ask per bu. for the oats to net 10% profit on the cost of both?

25. A provision dealer purchased 20 bbls. of apples at $1.50 per bbl., 50 bu. potatoes at 50c. per bu., and 250 lbs. of Marblehead squashes at 2c. per lb. He sells 10 bbls. of the apples at $1.87 per bbl., finds 1 bbl. worthless, and sells the rest at 5% gain. He is obliged to throw away 5 squashes weighing 8 lbs. each, but retails the remainder at 5c. per lb. He sells the potatoes at such a price as will make a net profit of 20% on all the purchase. What was the price per bu.? 26. How much should be asked per lb. for fish that cost $3.75 per cwt. to cover a 20% profit and 10% waste?

27. A book agent sold two books at $5 each. On one he

made 50% and on the other he lost 50%. lose on both transactions? How much?

Did he gain or

What % ?

28. If I buy goods at $3 with 5% off and sell for $3.20 with 5% off, what % of profit do I make?

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29. Buy coffee at $24 per cwt. and chicory at $10 per Mix them, using 5 of coffee to 2 of chicory. Sell mixture at 30c. per lb. Find the gain %.

30. Bought goods at $5 a gross, less 20%, and sold them at 50c. per dozen, less 25%. What is my per cent. of gain or loss?

31. Bought goods for $2000, and in one year sold the same for $2155, and paid $95 for storage. Did I make more or less than by putting the money at interest at 6% ? What per cent. did I gain or lose?

32. By selling 25 lbs. of sugar for $1 I lost 20%. What was the cost per lb. ?

33. Bought 9 cwt. 30 lbs. coffee for $285. For what must I sell it per lb. to gain 15% ?

34. Coffee which costs 24c. per lb. was marked for sale at 30c.; it was afterward marked up 5%, at which price 200 bags, of 165 lbs. each, were sold. The purchaser, failing before settlement was made, compromised at 80c. on the $1. Did the seller gain or lose? How much per lb., and what % ?

35. A coal dealer bought 275 long tons of coal at $6 per ton, paid charges $595, and sold it by the short ton at $9.50. What was his net gain and gain %?

36. Bought goods amounting to $6845, and after paying charges, $65, I sold them at 121% advance, and took in payment a 60-day note which I had discounted at 6%. What was my gain and gain %?

37. A man imports 60 pieces of broadcloth, of 14 yds. each, at $2.75 per yd. The duties and other charges amount to $640. At what price per yd. must he sell it to gain 15% ? 38. If I buy flour at $8.50 per bbl. and retail it at 20 lbs. for $1, what is my gain %?

39. What % of profit do peaches pay at 2c. apiece, if they cost 60c. per 100 and 10% are lost by decay?

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