Tom started a new grocery store business. During his first month he bought groceries for $650$650 and sold them for $800$800, while in the second month he bought with $800$800 and sold for $1200$1200. We need to know if Tom made more profit or not and profit or loss percentage Choose the correct choice
A) 50 % loss B) 50% Profit C) 40 % loss D) 60 % Profit E) None
Solution:   We cannot directly tell from these numbers if Tom's profit is increasing or not since his spending and gain are different amounts each month. In order to solve this problem we need to refer all the values to a fixed base value which is 100. Let us express the percent of his profit with respect to his expenditure for the first month:   (800 - 650) ÷ 650 ⋅ 100 = 23.08%   This means that, if Tom spent $100, he would have made a profit of 23.08 in the first month.   Now, let us apply the same for the second month:   (1200 - 800) ÷ 800 ⋅ 100 = 50%   So, for the second month, if Tom spent $100$100 he would have made a profit of $50$50(because $100⋅50%=$100⋅50÷100=$50$100⋅50%=$100⋅50÷100=$50). Now it is clear that Tom's profits are increasing.   Answer 50% Profit
<result>B</result>
Tom started a new grocery store business. During his first month he bought groceries for $650$650 and sold them for $800$800, while in the second month he bought with $800$800 and sold for $1200$1200. We need to know if Tom made more profit or not and profit or loss percentage