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PROFIT AND LOSS

Business profits are often calculated on the selling price, and it is useful to have a ready method of comparing profit on selling price.

Rule — Give the percentage profit on cost, to find the percentage profit on selling price. Express the percentage as a vulgar fraction and add the numerator to the denominator, e.g.

Percentage profit on
cost Fraction

First
Fraction

Second on
sale

Percentage
Profit

20%

1 / 5

1 / 6

162 / 3%

25%

1 / 4

1 / 5

20%

331 / 3%

1 / 3

1 / 4

25%

40%

2 / 5

2 / 7

28.57%

50%

1 / 2

1 / 3

331 / 3%

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