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Difficulty: EasyProfit and Loss

A landscaper purchases a used backpack leaf blower for 240.Aweeklater,theyselltheequipmenttoanothercontractorfor240. A week later, they sell the equipment to another contractor for 300. What is the landscaper's profit percentage?

  1. 25%Answer
  2. B
    20%
  3. C
    125%
  4. D
    2.5%

Answer

25%
To find the profit percentage, first calculate the total profit by subtracting the cost (240)fromthesellingprice(240) from the selling price ( 300), which equals 60.Then,dividethatprofitbytheoriginalcost(60. Then, divide that profit by the original cost ( 240). 60dividedby60 divided by 240 is 0.25, which translates to a 25% profit.

Step-by-Step Solution

1
Determine the dollar amount of the profit by subtracting the original purchase price from the selling price.
300−300 - 240 = $60
Profit is the positive difference between revenue (selling price) and expenses (cost price).
2
Set up a fraction or division problem placing the profit over the original cost price.
60 / 240
Profit percentage is always calculated relative to the original cost, not the final selling price.
3
Simplify the fraction and convert it into a percentage.
60 / 240 = 1 / 4 = 0.25 = 25%
Converting the decimal ratio to a percentage provides the final answer.

Key Concept

Profit Percentage Calculation

Alternative Method

You can also solve this by dividing the selling price by the cost price first (300/300 / 240 = 1.25). Because 1.00 represents the original 100% cost, the decimal portion remaining (0.25) represents the profit, which is 25%.
Estimated Time:45s
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Topics

Profit and Loss

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