A product is bought for $200 and sold for $240. What is the profit percentage?

A product is bought for $200 and sold for $240. What is the profit percentage?

Step 1: Identify the cost price of the product, which is $200.
Step 2: Identify the selling price of the product, which is $240.
Step 3: Calculate the profit by subtracting the cost price from the selling price: Profit = Selling Price - Cost Price = 240 - 200.
Step 4: Calculate the profit: Profit = 40.
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 = (40 / 200) * 100.
Step 7: Calculate the profit percentage: Profit Percentage = 0.2 * 100.
Step 8: The final result is: 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.