Sale price \( =650 \), Profit \( =30 \% \) Cost price \( =500 \)

Did you know that profit percentage is calculated based on the cost price? In your case, with a sale price of $650 and a profit of 30%, we can see that the cost price of $500 really does make sense! This means that the profit earned is $150, which is the difference between the sale price and the cost price, and indeed, $150 is 30% of $500! Now, if you're ever in a similar situation and want to avoid common mistakes, remember to double-check your calculations. A small miscalculation can lead to confusion about profit margins. For example, if you mistakenly used the sale price instead of the cost price to calculate the profit percentage, your results could be off. Always verify that you’re using the correct figures!