To think that this sum is super simple

[PeerieBreeks]

and can't understand how so many people on Facebook have it so completely wrong (and can justify it to themselves).

Without adding your reasoning, tell me what you think the answer is.

[PeerieBreeks]

@Pengggwn I don't think not being great at maths is highly amusing.

I think people that are telling others not to run a business as they can't work out profit correctly when they are entirely wrong themselves is highly amusing.

People that aren't good at maths know it, and wouldn't be so bold as to make that kind of comment.

[CuriousaboutSamphire]

Sorry, that included my reasoning. But these things annoy/amuse me

[BeyondThePage]

if you take it from him having $60... he sells for $70 - so he made $10

he then buys the same thing for $80 so someone else made $10

Then sells it for $90 so made another $10.

He made $20, someone else made $10.

(none of it will be profit since keeping and transporting a horse costs a damn lot more than $20!)

[FluffyWuffy100]

I can see why people are interpreting it in different ways for answers $10 $20 and $30.

I belive the correct answer is:
Revenue (70 + 90) = 160
Cost of sales -(60 + 80) = -140
Gross profit = 20

However I can see why people think it’s $30 (90-60) as they think you take the last sales price and the first purchase price.

Also can see 10 because you think you make 10 on the first transaction, then spend 10 to get the horse then make 10 again.

Can’t see 40 or break even.

[BMW6]

$20 profit.

[JackmanAdmirer]

$20 profit

[PeerieBreeks]

And to be fair, the people that are getting it wrong seem to be either over-complicating it and doing something with a perceived $10 loss in the middle, or over-simplifying it saying he started with 60, now he has 90. And I can understand how either could easily happen and when you have that concept in your head its hard to see past it.

[megletthesecond]

[CecilyP]

You’re right; some people aren’t great at maths, but this is very basic arithmetic, or simple logic. Can those who came out as break even, $10 or $30 explain how they got there?

[Bookaboo]

I don't think it helps to look at it as 2 separate transactions because it's not.

The way I'm looking at it it is how much money did he make from his initial investment in this one horse?
I still think that is only $10.

[BadLad]

He made 20 profit.

Twice he bought something and then sold it for then more than he paid.

[ManagedTeaCups]

Like I said I’m not good at maths he paid out 80 for the horse then got 90 back so the final difference was 10 that’s how I got 10 profit overall

[Drinaballerina]

This encapsulates the problem with the financial system. You can get the numbers to say all sorts depending on what you want them to - I say this as an accountant!

[Bookaboo]

The question asks in the end, so surely it's net profit, not gross profit?

[IShouldGoToBed]

$10 - he gained

[BadLad]

Like I said I’m not good at maths he paid out 80 for the horse then got 90 back so the final difference was 10 that’s how I got 10 profit overall

Why are you ignoring the first time he bought and sold the horse?

[PeerieBreeks]

The $40 I sat was someone saying 90-60 =40.

The break even people generally say

He spent 60, got back 70 which was 10 profit plus his 60. He then spends 80 which is the 70 plus 10, then he gets 90 which gives him his 70 plus the two extra 10's that he already spent.

Which is super complicated and doesn't make sense...

[ManagedTeaCups]

I thought the wording of the question wanted the final profit the final amount ‘up’

[CecilyP]

I don't think it helps to look at it as 2 separate transactions because it's not

Yes it is!

[BookHelpPlease]

This isn't even maths, it's a really basic logic question. I am shocked at the amount of people confused by it.

Bookaboo-
He spent 60 + 80 = 140
he earns 70 + 90= 160

He makes 20 in profit.

They are separate transactions. Once he's sold the horse, he could be buying anything the second time.

Imagine he bought a horse for 60, sold it for 70 makes £10.
Then buys a cow for 80, sold it for 90, makes another £10.

[ThumbWitchesAbroad]

It is easy, yes.
$20 profit.

To avoid confusion, he spends out $140 in total, and gets back $160 in total.

[UnmitigatedBollocks]

I’m really thick at maths but even I got it.

[goose1964]

broke even made 2 £10 profits and 2 £10 losses

[IShouldGoToBed]

Sorry - that means he was $20 up by the end!! ( well done him - but buying and sellling horses is quite a complex and labour intensive way to make $20! Unless it's all online!!)