If the cost of an item is $40 and it is sold for $60, what is the profit?

If the cost of an item is $40 and it is sold for $60, what is the profit?

• A. Profit = $10
• B. Profit = $15
• C. Profit = $20
• D. Profit = $25

Answer: (C)

To determine the profit made from selling an item, you subtract the cost of the item from the selling price. In this case, the cost of the item is $40, and it is sold for $60. The formula for calculating profit is: Profit = Selling Price - Cost Price Using the values given: Profit = $60 - $40 = $20 This calculation shows that the profit made when the item is sold for $60 after costing $40 is indeed $20. Therefore, the accurate answer is that the profit equals $20.

To determine the profit made from selling an item, you subtract the cost of the item from the selling price. In this case, the cost of the item is $40, and it is sold for $60.

The formula for calculating profit is:

Profit = Selling Price - Cost Price

Using the values given:

Profit = $60 - $40 = $20

This calculation shows that the profit made when the item is sold for $60 after costing $40 is indeed $20. Therefore, the accurate answer is that the profit equals $20.