Examkin

Question

Difficulty: EasyProfit and Loss

Match each buy-and-sell transaction to the correct dollar amount of profit or loss.

  • Buy a tool set for $40\$40 and sell it for $65\$65.$25\$25 Profit
  • Buy a used guitar for $200\$200 and sell it for $150\$150.$50\$50 Loss
  • Buy a blender for $30\$30 and sell it for $30\$30.$0\$0 (Break-even)
  • Buy a winter coat for $85\$85 and sell it for $100\$100.$15\$15 Profit

Answer

Tool set matches $25\$25 Profit; Guitar matches $50\$50 Loss; Blender matches $0\$0 (Break-even); Winter coat matches $15\$15 Profit.
Profit is correctly calculated when the selling price is higher than the cost price. A loss occurs when the selling price is lower than the cost price, and breaking even occurs when the two prices are identical.

Step-by-Step Solution

1
Calculate the difference between the selling price and the cost price for each transaction.
Tool set: $65−$40=$25\$65 - \$40 = \$25. Guitar: $150−$200=−$50\$150 - \$200 = -\$50. Blender: $30−$30=$0\$30 - \$30 = \$0. Coat: $100−$85=$15\$100 - \$85 = \$15.
The difference determines the amount of money gained or lost on each item.
2
Determine if each result is a profit, loss, or break-even.
Positive values ($25\$25, $15\$15) are profits. The negative value (−$50-\$50) is a loss. Zero ($0\$0) is a break-even.
A positive difference means money was made (profit), a negative difference means money was lost (loss), and zero means no change in value.

Key Concept

Calculating absolute profit or loss by finding the difference between selling price and cost price.
Rate this question

Topics

Profit and Loss

More questions from this topic