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 percentage?

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

Step 1: Identify the cost price of the goods. In this case, the cost price is $500.
Step 2: Identify the selling price of the goods. Here, the selling price is $600.
Step 3: Calculate the profit by subtracting the cost price from the selling price. Profit = Selling Price - Cost Price = $600 - $500.
Step 4: Perform the subtraction to find the profit. Profit = $100.
Step 5: Calculate the profit percentage using the formula: Profit Percentage = (Profit / Cost Price) * 100.
Step 6: Substitute the values into the formula: Profit Percentage = ($100 / $500) * 100.
Step 7: Perform the division: $100 / $500 = 0.2.
Step 8: Multiply by 100 to convert to 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.