Wednesday, August 1, 2012

Mathematical Word Problems - 4 - Profit

6:44 AM


Mathematical Word Problems - 4 - Profit

Profit

What is profit?

Gross profit is equal to revenues minus expenses, or selling price minus cost.

Example
Question:
A certain appliance costs a merchant $30. At what price should the merchant sell the appliance in order to make a gross profit of 50 percent of the cost of the appliance?
Solution:
If s is the selling price of the appliance, then s − 30 = (0.5)(30), or s = $45. The merchant should sell the appliance for $45.

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