MATHEMATICS Topic: Ratios, Percentages and Profit & Loss Scenario

Sarah first explained that cost price (CP) is the money spent to buy goods, while selling price (SP) is the money received after selling them. She showed that profit is made when SP is higher than CP, and loss occurs when SP is lower than CP. Using examples like buying sugar at 4,000/= and selling it at 5,000/=, she clearly demonstrated profit.

She then showed how percentages help traders know how much profit or loss they make. For example, if a trader makes a profit of 1,000/= on a cost price of 4,000/=, Sarah calculated the percentage profit as

(1000/
4000)
×
100
=
25
%
4,000
1,000


×100=25%

Sarah also explained how ratios help in managing stock and sharing profits. For instance, if two traders contribute capital in the ratio 2:3, profits should be shared in the same ratio to ensure fairness.

Finally, she advised traders that Mathematics helps them set correct prices, avoid losses, plan stock levels, and make informed business decisions, leading to steady profits.

Sarah explained that profit is the gain made after selling goods, while loss is the shortfall when goods are sold cheaply. She clarified that cost price is the starting point of any calculation, and selling price determines success or failure.

She demonstrated how percentage profit and loss help traders know whether their efforts are worthwhile, especially when comparing different goods like soap and cooking oil.

Through ratios, Sarah showed how traders can restock goods in the right proportions and divide profits fairly among family members or partners involved in the business.

She finally advised that Mathematics helps traders reduce losses, improve planning, price goods correctly, and make smart business choices instead of relying on assumptions.

Profit (gain) This happens when the selling price is more than the buying price.Simply you earn extra money in it.
Loss.These happens when the selling price is less than the buying price.Here you lose money.
Cost price (buying price) it's the price the buyer pays for an item or the price that shows how much an item is bought.
Selling price.Is the price that shows how much an item is sold

1. *Explain the meaning of profit, loss, cost price, and selling price.*
- *Profit*: The amount earned when the selling price (SP) exceeds the cost price (CP).
[Selling price–cost price]=Profit.
- *Loss*: The amount incurred when the cost price exceeds the selling price.
[Cost price –selling price]=Loss
- *Cost Price (CP)*: The original price at which an item is bought or produced.
- *Selling Price (SP)*: The price at which an item is sold to a customer.

2. *Show how percentages are used to calculate profit and loss fairly.*
- Profit or loss is often expressed as a percentage of the cost price to standardize comparisons.
- %Profit=[(SP –CP)/CP]×100%
- %Loss=[(CP–SP)/CP]×100%
- These percentages enable businesses to assess performance relative to investment.

3. *Demonstrate how ratios can be used to manage stock and share profits Fairly.
So wat i think is that they can be able 2 use ratios 2 manage stock by recommendeding different rational proportions that can easily show a person wat amount of money is he going 2 spend on a particular item during stocking and the same knowledge can be used to share profits amongst people. Ie the items can b subjected 2 such proportions during, sugar(3), rice (4), soap(1) and cooking oil(2) making a total ratio of 10, this makes the job alot easier coz ever item has its own proportion 2 be used wen arranging 4 stocking
4. *Advise traders on how using Mathematics can help them make better business decisions.*
- Use profit/loss percentages to set real pricing strategies and evaluate profitability.
- Apply ratio analysis for inventory control, reducing overstock or shortages.

Sarah explained that profit is the gain made after selling goods, while loss is the shortfall when goods are sold cheaply. She clarified that cost price is the starting point of any calculation, and selling price determines success or failure.

She demonstrated how percentage profit and loss help traders know whether their efforts are worthwhile, especially when comparing different goods like soap and cooking oil.

Through ratios, Sarah showed how traders can restock goods in the right proportions and divide profits fairly among family members or partners involved in the business.

She finally advised that Mathematics helps traders reduce losses, improve planning, price goods correctly, and make smart business choices instead of relying on assumptions.

Ans1 Sarah began with the basics, using examples from the traders’ own shops. She explained that the cost price is the money spent to buy goods, while the selling price is the money received after selling them. If the selling price is higher than the cost price, the trader makes a profit. If it is lower, the trader makes a loss. This helped the traders clearly see where their money was going.