Scribd
Upload
2 views7 pages

Understanding Profit and Loss Basics

This lesson reviews the concepts of profit and loss, focusing on net profit, which is the difference between revenue and expenses. It provides examples of calculating profit using Aling Yesha's turon sales and introduces a scenario with Mary Lance's cookie sales to determine if she will earn a profit or incur a loss. The document emphasizes the importance of understanding revenue and expenses in business operations.

Uploaded by

Kyzher Yianlie Rivera
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
2 views7 pages

Understanding Profit and Loss Basics

This lesson reviews the concepts of profit and loss, focusing on net profit, which is the difference between revenue and expenses. It provides examples of calculating profit using Aling Yesha's turon sales and introduces a scenario with Mary Lance's cookie sales to determine if she will earn a profit or incur a loss. The document emphasizes the importance of understanding revenue and expenses in business operations.

Uploaded by

Kyzher Yianlie Rivera
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

This lesson is a review of your previous discussion on profit and loss.

The bottom line of business is to earn profit. There are two types of
profit– net profit and gross profit. In our discussion we will be
referring to net profit. The term profit is associated with revenue and
expenses.

Revenue (R) is the amount that a company receives for its goods and
or services. It is sometimes called as the income.

Expenses (E) is the amount of money that the company spends on


production of goods or operation of services.

Profit (P) is the difference between revenue and expense.

P=R–E

Incase the difference is a negative value, then it indicates that there is


a Loss.
Aling Yesha made 100 pieces of turon
and sold them at ₱5.00 each. It costs
her ₱3.00 to make each turon. If all the
turon were sold, how much will be her
profit?
The total expenses in making 100 turon is

E=100(3.00) =300.00

The total income or revenue is: R=100(5.00) =500.00

Then we compute for the profit


P=R-E

=500.00 — ₱300.00
= 200.00

Therefore, Aling Maria will have a profit of ₱200.00.


Mary lance made 100 pieces of
cookies to sell. It cost her ₱10.00
to make one piece of cookie. She
was able to sell 70pieces at ₱14.00
each. Will she earn a profit or will it
be a loss?

You might also like