A merchant bought a batch of goods for $500 and sold them for $600. What is the

A merchant bought a batch of goods for $500 and sold them for $600. What is the profit in dollars and the profit percentage?

A merchant bought a batch of goods for $500 and sold them for $600. What is the profit in dollars and the profit percentage?

Step 1: Identify the Cost Price (CP) of the goods, which is $500.
Step 2: Identify the Selling Price (SP) of the goods, which is $600.
Step 3: Calculate the Profit by subtracting the Cost Price from the Selling Price: Profit = SP - CP = $600 - $500.
Step 4: Calculate the Profit: Profit = $100.
Step 5: To find the Profit Percentage, use the formula: Profit Percentage = (Profit / Cost Price) * 100.
Step 6: Substitute the values into the formula: Profit Percentage = ($100 / $500) * 100.
Step 7: Calculate the Profit Percentage: Profit Percentage = 20%.

Profit Calculation – Understanding how to calculate profit by subtracting the cost price from the selling price.
Profit Percentage – Calculating profit percentage using the formula (Profit / Cost Price) * 100.