We will be releasing a series of LET review posts to help you prepare for the March 2021 exam. If you are reviewing right now, just follow our Facebook page for future updates. Business math is one of the most common types of question in the Licensure Exam for Teachers (LET). In today’s LET review topic, we will talk about how to calculate for the profit of a business.
This topic and variations of it may come out in the General Education Exam, the Math Specialization Exam and the TLE Specialization Exam.
Let’s take this question as an example:
Question:
Find the profit of Jennifer’s laundry shop business with revenue of ₱57,000,000 and costs of ₱41,000,000.
- a. ₱14,000,000
- b. ₱160,000
- c. ₱1,400,000
- d. ₱16,000,000
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Explanation:
To get the profit, you will need to use this formula:
Profit = Total Revenue – Total Cost
For this question, all you have to do is to subtract the cost (₱41,000,000) of the business from the revenue (₱57,000,000):
₱57,000,000 – Total Revenue
–₱41,000,000 – Total Cost
₱16,000,000
The answer is letter D.
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Solving for the Revenue
Just like with other math problems, the elements of the formula can be transposed if either the revenue or the cost is missing. Here are some examples of variations for the profit problem:
Jeoffrey’s shoe store has an overhead cost of ₱23,000. If his profits is ₱82,000, how much is the total revenue?
This time we are looking for the revenue. To get the revenue, we will need to add the profit to the cost:
Profit = Total Revenue – Total Cost
Total Revenue = Profit + Total Cost
Total Revenue = ₱23,000 + ₱82,000
Total Revenue = ₱105,000
To calculate for the cost, just subtract the profit from the revenue.