lesson
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Imagine you want to run a lemonade stand on a sunny day. Before you can hand a cold cup of lemonade to your friend, where do you get the lemons and cups?
Buying What You Need
Before a shopkeeper can sell anything, they must first buy it or make it. The money you pay to get an item is called the cost price.
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Now you have the juice box ready on your stand. But what happens when a thirsty customer walks up to buy it?
Selling to Customers
When a customer wants your item, you choose an amount of money for them to pay you. The money a customer pays to buy an item from you is called the selling price.
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Can you tell the two prices apart just by looking at who is paying the money?
Cost Price vs. Selling Price
The easiest way to remember is to follow where the money goes. Cost price is money going out of the shopkeeper's pocket, while selling price is money coming into the shopkeeper's pocket.
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Let's look at an example: Maya buys a toy car for 3toputinhertoyshop.Later,SamwalksinandbuysthatsametoycarfromMayafor5.