Managing Money - Buying and Selling

Managing Money 3

Buying and selling

Learning objectives

• Calculate the cost price, selling price, percentage profit or loss and actual mark up using given rates and prices

• Work out the actual price of discounted item

• Calculate percentage discount given the original and the new price

Profit

• Profit is earned when the selling price is greater than the cost price.

• You can calculate percentage profit as a percentage of the cost price or the selling price, but it is most common to use the cost price.

• Profit = selling price – cost price

Loss

• A loss is incurred when the selling price is less than the cost price.

• Loss = cost price – selling price

Find the price from percentage profit

• Terry buys goods at a cost of $4.50 each. What must his selling price be in order to make a 20% profit?

• Terry must sell the goods at $5.40 each to make a 20% profit.

Multiple Choice

Ella buys goods for her shop at $76 each. She sells them for $95 each.

Profit=$95 − $76 =$19

Which calculation below shows how to find the profit as a percentage of her cost price?

• 19/95 × 100% = 20%

• 19/100 × 95 = 18.05%

• 19/76 × 100% = 25%

• 19/100 × 76 = 14.44%

Multiple Choice

Percentage profit can be calculated as a percentage of the:

• selling price only

• cost price only

• cost price or the selling price

Multiple Choice

Tom buys tricycles for $80 and sells them making a 25% profit.

What would be the selling price?

• $60

• $90

• $100

• $105

Multiple Choice

True or false?

Neko buys goods at a cost of $320 each and sells them for $300 each.

This means she is making a profit.

• True

• False

Discount

• When something is on sale, the discount is often given as a percentage.

• The discount is the amount you save.

• The discount price is the amount you pay.

Example

• What is the discount price for a $450 music player if it is on sale for 30% off?

Open Ended

A sport shop sells a pair of sport shoes for $100.

During sales, they gives discount 50% plus additional discount of 30%.

What will be the new price for the shoes?