A product is bought for $120 and sold for $144. What is the profit percentage?

A product is bought for $120 and sold for $144. What is the profit percentage?

Step 1: Identify the cost price of the product, which is $120.
Step 2: Identify the selling price of the product, which is $144.
Step 3: Calculate the profit by subtracting the cost price from the selling price: Profit = Selling Price - Cost Price = 144 - 120.
Step 4: Perform the subtraction: 144 - 120 = 24. So, the profit is $24.
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 = (24 / 120) * 100.
Step 7: Calculate the division: 24 / 120 = 0.2.
Step 8: Multiply by 100 to get the percentage: 0.2 * 100 = 20%.
Step 9: Conclude that the profit percentage is 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.