Making sales does not always mean making profit.
A business may have increasing turnover, more customers, and larger orders while still earning very little—or even losing money.
Profit or Loss explains how to understand the numbers behind a business and use them to make better pricing and financial decisions.
Starting with simple concepts such as cost price, selling price, profit, and loss, the book gradually moves into real-world business mathematics including markup, margin, discounting, GST calculations, overheads, break-even analysis, inventory, credit sales, machine costing, return on investment, and cash flow.
Every major concept is explained step by step using practical examples.
What You Will Learn
- Cost Price and Selling Price
- Profit and Loss Percentages
- Markup vs Profit Margin
- How to Set a Profitable Selling Price
- Discounts and Their Effect on Profit
- GST-Inclusive and GST-Exclusive Calculations
- Gross Profit vs Net Profit
- Fixed and Variable Costs
- Contribution Margin
- Break-Even Analysis
- Target-Profit Calculations
- True Product and Job Costing
- Pricing for Manufacturing and Printing
- Service-Business Pricing
- Bulk Buying and Selling
- Inventory Turnover and Dead Stock
- Sales Commissions
- Credit Sales and Bad Debts
- Interest and Borrowing Costs
- Machine-Hour Cost and Depreciation
- Cash Flow vs Profit
- Return on Investment
- Profitability Ratios
- Reverse Profit-and-Loss Calculations
Practical Learning Features
The book includes:
100 fully worked examples
Follow calculations from basic profit and loss through advanced business scenarios.
60 practice problems and business cases
Test your understanding and apply the concepts to realistic decisions.
Complete answers and explanations
Check not only the final answer but also the method used.
Business worksheets
Includes templates for:
- Product costing
- Job quotation
- Monthly profit and loss
- Break-even analysis
- Discount decisions
- Credit sales
- Machine costing
- Service-business pricing
- Inventory review
- Receivable review
- Investment decisions
Quick formula reference
Essential formulas are collected into an easy-to-use reference section.
Who Should Read This Book?
This book is especially useful for:
- Entrepreneurs
- Small-business owners
- Shopkeepers and traders
- Managers
- Printing and manufacturing businesses
- Freelancers
- Service providers
- Sales professionals
- Commerce and business students
- Anyone planning to start a business
No advanced mathematics is required.
The calculations mainly use simple addition, subtraction, multiplication, division, and percentages.
Why This Book Is Different
Many books explain profit and loss only as a school mathematics topic.
Profit or Loss takes the subject further.
It explains what happens when real business costs are added:
transport, labour, wastage, machine time, commissions, discounts, credit, interest, overhead, inventory, and taxes.
The central question throughout the book is simple:
After all the relevant costs are considered, did the business actually make money?
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