# how to make working model to demonstrate profit and loss formulas

To demonstrate the application of various formulas used in profit and loss calculations, such as the formulas for calculating profit, loss, cost price, selling price, and profit percentage. Learners can see how these formulas are derived and apply them to solve real-world problems.

Creating a working model to demonstrate profit and loss formulas using cardboard and colored paper is a great way to help students understand these concepts visually.

Here’s how you can make it:

### Materials Needed:

1. Cardboard
2. Colored paper (different colors)
3. Ruler
4. Pencil
5. Scissors
6. Glue or tape
7. Marker
8. Coins or play money (optional)

### Steps by Steps Video Instructions on Profit and Loss Formulas:

#### 1. Prepare the Base:

• Take a piece of cardboard as the base for your working model.
• Cut it into a rectangle large enough to display the necessary components.

#### 2. Draw Sections:

• Divide the cardboard into sections using a ruler and pencil.
• Allocate space for the following sections: “Cost Price (CP)”, “Selling Price (SP)”, “Profit”, and “Loss”.

#### 3. Create Labels:

• Cut out small rectangles or squares from colored paper to create labels for each section.
• Write the labels “Cost Price (CP)”, “Selling Price (SP)”, “Profit”, and “Loss” on the paper labels using a marker.

#### 4. Formulate the Model:

• For the “Cost Price (CP)” section, draw a box or rectangle and label it “CP”.
• Similarly, draw boxes or rectangles for “Selling Price (SP)”, “Profit”, and “Loss”.
• Make sure each section is clearly labeled and large enough to write numbers or insert paper strips.

#### 9. Display and Explain:

• Once completed, display your working model in the classroom or on a wall where students can easily see it.
• Use the model to explain the concept of profit and loss, and how to calculate them using the given formulas.
• Encourage students to interact with the model by moving the paper strips and coins to visualize different scenarios.

With this working model, students can visually understand the concepts of profit and loss, helping them grasp these mathematical concepts more effectively.