What is the process of calculating the amount of loss when selling a TV set?
The amount of loss when selling a TV set can be calculated by determining the difference between the cost price and the selling price. To find the selling price, you first need to calculate the marked price, as the cost price is marked at a certain percentage above its cost. Once you have the marked price, you can then determine the selling price based on the given percentage of the marked price. Subtracting the selling price from the cost price will give you the amount of loss incurred.
Understanding the Formula for Calculating Loss
Loss = Cost Price - Selling Price
When selling a product such as a TV set, the cost price refers to the price at which the product was originally purchased. In this case, the cost price of the TV set is $4800. However, the TV set is marked at 20% above its cost price, which means the marked price is calculated as follows:
Marked Price = Cost Price + (20% of Cost Price)
Marked Price = $4800 + ($4800 x 20%)
Marked Price = $4800 + $960
Marked Price = $5760
Therefore, the marked price of the TV set is $5760. To find the selling price, you need to consider that the TV set is later sold at 75% of its selling price, which is 120% of the cost price. This can be calculated as:
Selling Price = Marked Price x 75%
Selling Price = $5760 x 75%
Selling Price = $5760 x 0.75
Selling Price = $4320
Now that we have the selling price, we can determine the amount of loss by subtracting the selling price from the cost price:
Loss = $4800 - $4320
Loss = $480
Therefore, the amount of loss incurred from selling the TV set is $480.