A shopkeeper bought a shirt for $40 and sold it for $50. What is the percentage

A shopkeeper bought a shirt for $40 and sold it for $50. What is the percentage profit?

A shopkeeper bought a shirt for $40 and sold it for $50. What is the percentage profit?

Step 1: Identify the Cost Price (CP) of the shirt, which is $40.
Step 2: Identify the Selling Price (SP) of the shirt, which is $50.
Step 3: Calculate the Profit by subtracting the Cost Price from the Selling Price: Profit = SP - CP = 50 - 40.
Step 4: The Profit is $10.
Step 5: To find the Percentage Profit, use the formula: Percentage Profit = (Profit / Cost Price) * 100.
Step 6: Substitute the values into the formula: Percentage Profit = (10 / 40) * 100.
Step 7: Calculate (10 / 40) which equals 0.25.
Step 8: Multiply 0.25 by 100 to get the Percentage Profit: 0.25 * 100 = 25%.

Profit Calculation – Understanding how to calculate profit by subtracting the cost price from the selling price.
Percentage Calculation – Knowing how to express profit as a percentage of the cost price.