Profit and Loss

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Basic formulas for Profit and Loss

1) Cost Price (CP) is the cost at which an article is purchased. Profit or loss is always on Cost Price.

2) Marked Price (MP) is the price at which an article is listed. Discount is offered on Marked Price.

3) Selling Price (SP) is the price at which an article is sold after giving the discount.

4) where p is the percentage profit.

5) where p is the loss in percent.

6) If SP > CP then we have profit.
Profit = SP - CP.

7) If SP < CP then we have loss.
Loss = CP - SP.

NOTE:

Profit and loss are always calculated on cost price unless otherwise stated in the question.
If an article is sold at a certain gain (say 25%) then SP = 1.25 CP
If an article is sold at a certain loss (say 20%) then SP = 0.8 CP

8) 9) 10) If CP of 2 articles is same, and one of them is sold at a profit of p% and other article is sold at a loss of p% then net transaction has no profit (0% profit).

Example: A man sold 2 radios for Rs 2000 each. On one he gained 16% and on the other he loses 16%. Find the gain or loss per cent in the whole transaction.

Solution:

Here p = 16%
Loss % = (16/10)2 = 2.56%

11) If SP of 2 articles is same (Rs y), and one of them is sold at a profit of p% and other article is sold at a loss of p% then net transaction has a loss of . Absolute Value of the loss is 12) If a trader professes to sell his goods at cost price, but uses false weights, then Example: A dishonest dealer professes to sell his goods at cost price but he uses a weight of 930 g for 1 Kg weight. Find his gain per cent.

Solution:

Here gain is 70 gm on 930 gm.
Gain % = (70/930)100% = 7.53%

Method 2: Use the formula specified above.
Error = 70, True value = 1000
Gain % = (70/(1000-70))100% = 7.53%