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Question

Difficulty: MediumProfit and Loss

Match each landscaping supply transaction to its correct final profit or loss percentage.

  • Purchased a soil pallet for 200andsolditfor200 and sold it for 250.25% profit
  • Bought a used lawnmower for 400,spent400, spent 100 on repairs, and sold it for $400.20% loss
  • Acquired a set of gardening tools for 150andsoldthemonclearancefor150 and sold them on clearance for 90.40% loss
  • Purchased decorative stones for 300andsoldthemfor300 and sold them for 600.100% profit

Answer

The soil pallet transaction resulted in a 25% profit. The lawnmower transaction resulted in a 20% loss. The gardening tools transaction resulted in a 40% loss. The decorative stones transaction resulted in a 100% profit.
Each matching pair accurately reflects the transaction's net profit or loss divided by the total initial cost (including any overhead).

Step-by-Step Solution

1
Calculate the percentage profit for the soil pallet.
Profit = 250−250 - 200 = 50.Percentage=(50. Percentage = ( 50 / $200) * 100 = 25%. This matches the '25% profit' option.
Profit is the positive difference between the selling price and cost. The percentage is always calculated over the original cost.
2
Determine the total initial cost of the lawnmower including overhead, then find the percentage loss.
Total cost = 400+400 + 100 = 500.Loss=500. Loss = 500 - 400=400 = 100. Percentage = (100/100 / 500) * 100 = 20%. This matches the '20% loss' option.
Overhead expenses (like repairs) must be added to the initial purchase price to find the true total cost basis before evaluating profit or loss.
3
Calculate the percentage loss for the gardening tools.
Loss = 150−150 - 90 = 60.Percentage=(60. Percentage = ( 60 / $150) * 100 = 40%. This matches the '40% loss' option.
Loss is the negative difference between the selling price and cost, and the percentage is found by dividing that difference by the original cost.
4
Calculate the percentage profit for the decorative stones.
Profit = 600−600 - 300 = 300.Percentage=(300. Percentage = ( 300 / $300) * 100 = 100%. This matches the '100% profit' option.
When an item is sold for exactly double its purchase price, the profit equals the original cost, which corresponds to a 100% return.

Key Concept

Calculating percentage profit and loss based on total cost

Alternative Method

For profit scenarios, you can divide the selling price directly by the cost price to get a multiplier. For the decorative stones: 600/600 / 300 = 2.0. A multiplier of 2.0 corresponds to a 100% increase (profit).
Estimated Time:1m 30s
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Topics

Profit and Loss

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