Year 6 Maths: Profit and Loss

Understanding Profit and Loss

Hello, Year 6! Today, we’re going to learn about profit and loss. These are important ideas that help businesses understand how much money they are making or losing.

What is Profit?

Profit is the money a business makes after selling something, minus the cost of making or buying that item.

Example of Profit

Imagine you run a lemonade stand. Here’s how it works:

• Cost of making lemonade (ingredients): £2
• Money you earn from selling lemonade: £5

To find the profit, you subtract the cost from the money earned:

$$\text{Profit} = \text{Money Earned} – \text{Cost}$$

$$\text{Profit} = £5 – £2 = £3$$

So, your profit is £3!

What is Loss?

Loss is the opposite of profit. It happens when the cost of making or buying something is more than the money earned from selling it.

Example of Loss

Let’s say you had a bad day at your lemonade stand:

• Cost of making lemonade (ingredients): £3
• Money you earn from selling lemonade: £2

Now, let’s find the loss:

$$\text{Loss} = \text{Cost} – \text{Money Earned}$$

$$\text{Loss} = £3 – £2 = £1$$

So, your loss is £1.

Key Rules to Remember

1. Profit Formula:
   • $$\text{Profit} = \text{Money Earned} – \text{Cost}$$
2. Loss Formula:
   • $$\text{Loss} = \text{Cost} – \text{Money Earned}$$
3. If the result is positive, it’s a profit. If it’s negative, it’s a loss.

Tips and Tricks

• Keep track of costs: Always know how much you spend on making or buying your product.
• Set prices wisely: Make sure you sell your items for more than what they cost you to make a profit.
• Calculate before you sell: Do the math before you start selling to see if you can make a profit.

Questions on Profit and Loss

Easy Level Questions

1. If you sell a toy for £10 and it costs £6, what is your profit?
2. You buy a book for £5 and sell it for £3. How much loss do you have?
3. If a cake costs £4 to make and you sell it for £8, what is your profit?
4. You spend £2 on candy and sell it for £1. What is your loss?
5. Your friend sells a bracelet for £15. If it costs £10, what is the profit?
6. A pencil costs £1, and you sell it for £2. What is your profit?
7. If you buy a game for £20 and sell it for £15, how much loss do you have?
8. You buy a sandwich for £3 and sell it for £4. What is your profit?
9. If you sell a drawing for £5 and it cost £2 to make, what is your profit?
10. You spend £8 on a toy and sell it for £9. What is your profit?

Medium Level Questions

11. You sell a bike for £100. It cost you £75. What is your profit?
12. If you buy a video game for £30 and sell it for £25, how much loss do you have?
13. You make cupcakes for £10 and sell them for £15. What is your profit?
14. If you buy a shirt for £12 and sell it for £10, how much loss do you have?
15. You purchase a toy for £8 and sell it for £12. What is your profit?
16. If you sell a comic book for £6 but it cost £9, how much loss do you have?
17. You make lemonade for £2 and sell it for £5. What is your profit?
18. If you buy a game for £25 and sell it for £20, what is your loss?
19. You sell a necklace for £50, and it cost £30. What is your profit?
20. If you buy a backpack for £15 and sell it for £10, what is your loss?

Hard Level Questions

21. You run a stall selling cookies. If it costs you £12 to make them and you sell them for £20, what is your profit?
22. You buy a chair for £45 and sell it for £40. How much loss do you have?
23. You create art for £30 and sell it for £50. What is your profit?
24. If you buy a pair of shoes for £50 and sell them for £45, how much loss do you have?
25. You purchase ingredients for £18 and sell the cake for £30. What is your profit?
26. If you buy a model for £25 and sell it for £20, how much loss do you have?
27. You spend £14 on a hat and sell it for £22. What is your profit?
28. If you buy a lamp for £35 and sell it for £30, how much loss do you have?
29. You create a website for £100 and sell it for £150. What is your profit?
30. If you buy a bicycle for £120 and sell it for £100, what is your loss?

Answers and Explanations

Easy Level Answers

1. £4
2. £2
3. £4
4. £1
5. £5
6. £1
7. £5
8. £1
9. £3
10. £1

Medium Level Answers

11. £25
12. £5
13. £5
14. £2
15. £4
16. £3
17. £3
18. £5
19. £20
20. £5

Hard Level Answers

21. £8
22. £5
23. £20
24. £5
25. £12
26. £5
27. £8
28. £5
29. £50
30. £20

Now you have a good understanding of profit and loss! Remember to practice with the questions to get even better at it. Happy calculating!