Jeffrey Shaw Posted May 3, 2012 Share Posted May 3, 2012 Percentage profit is calculated on the sale price. Only if the aim is to dissimulate and to camouflage the extent of profit. You spend £500. Your gain is £250. The gain, your return on what you spend, is the profit and equals 50%. Link to comment Share on other sites More sharing options...
Lockjaw Posted May 3, 2012 Share Posted May 3, 2012 Only if the aim is to dissimulate and to camouflage the extent of profit.. Jacksons! It is, simply convention. When one states profit, one is shortening the term "percentage of the selling price which is profit" You spend £500. Your gain is £250. The gain, your return on what you spend, is the profit and equals 50%. ... of the purchase price. I agree. This is the point you made in the first place. The fact that convention is to calculate profit as a proportion of the selling price does not affect this; nor is it affected by it. It still comes down to language - as I initially stated. Link to comment Share on other sites More sharing options...
HeadingNorth Posted May 3, 2012 Share Posted May 3, 2012 The fact that convention is to calculate profit as a proportion of the selling price does not affect this; nor is it affected by it. Nor is it a fact! The percentage profit, by definition, is the amount gained as a percentage of the amount spent. Link to comment Share on other sites More sharing options...
Lockjaw Posted May 3, 2012 Share Posted May 3, 2012 Nor is it a fact! The percentage profit, by definition, is the amount gained as a percentage of the amount spent. You are, of course, correct. Link to comment Share on other sites More sharing options...
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