Formula For Calculating Profit, Loss, And Break Even

Profit, loss, and break-even is something that businesspeople often encounter. Not even businessmen, but consumers are usually thinking about it.

This time we from the team of matematikaakuntansi.blogpspot.com will discuss about the formula to calculate profit, loss, or even break.

To calculate the profit, loss, and break even can be calculated with only one formula at a time. The result of the calculation of the formula will determine the circumstances of whether to experience is profit, loss, or break even.

Here is the formula:
Profit, loss, or break even = Salling price - Purchasing price

From the above formula, then we can determine a circumstance whether profit, loss, or break even, with the following conditions:

1. A situation will get the profit if the result of the operation is positive,
2. A situation will be loss if the result of operation of the above formula is negative,
3. And a situation will break even if the result of the operation is 0.

Example:
Mr. Pajar bought mobile phone with $200 for resale to a friend named Mr. Erik for $250. Does Mr. Pajar will get the profit, loss, or break even on the sale of the mobile phone?

Answer:
Purchase price = $200
Selling price = $250

Profit, loss, or break even = Salling price - Purchasing price
Profit, loss, or break even = $250 - $200
Profit, loss, or break even = $50

Because the result is a positive value that is $50, So Mr. Pajar is gotten the profit on the sale of the mobile phone.

End for this article. Sorry if there are wrong word in this article.

Finally I want to say wassalamualikum wr wb.

Reference:

• matematikaakuntansi.blogspot.com

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