Contents
Profit and Loss with mathematical problems and solution
PROFIT
Profit is a remaining amount after total expenses costs are deducted from total revenue.
LOSS
In a business Loss is the stage when total revenue cost is less than from the producing cost.
COST PRICE
The price which a customer or a shopkeeper pays for an article at the time of purchasing is called its cost price or prime cost.
SELLING PRICE
The price which a shopkeeper gets by selling an article is called its selling price.
Profit= Selling Price- Cost Price
=S.P-C.P
Loss= Cost Price- Selling Price
= C.P-S.P
Some way when a person decides to sell the article at a certain price e writes a price on the article above the selling price at which he wants to sell it. The price that he marks is known as marked price. He writes more price on the article because everyday asks for decreasing the price, which is written or marked. so decrease in price is known as discount.
Discount= Marked price- Selling price
At times 2 customers come for the same article , the shopkeeper sells the article above the marked price, the prices above the marked prices is known as premium.
Premium= Selling price- Marked price
Profit and Loss
These are always calculated on cost price.
Profit %= [(S.P-C.P)/C.P]*100
Loss%=[(C.P-S.P)/C.P]*100
Formulae
In case of Loss:
S.P.= C.P*(100-Loss%)/100
In case of gain:
S.P.= C.P*(100+Profit%)/100
In case of gain:
C.P.= S.P.*100/(100+Profit%)
In case of loss:
C.P.= S.P*100/(100-Loss%)
Note
- Profit and loss percent (%) is the gain or loss on every 100 of the cost price.
- If(S.P.)>(C.P), there is a gain.
- If (S.P.)< (C.P), there is a loss.
- If n successive discount at the rate of d1% ,d2%, d3%……..dn%, then
S.P=M.P.(1-d1/100)(1-d2/100)…..(1-dn/100)
where, M.P.= market price
Example:
Que: By selling a book for 200 rs a man gains 20 rs, what is his gain %
Ans:
We know that
P%= (Profit/C.P)*100
Cost Price= S.P-Profit
=200-20
=180
P%= (20/180)*100
=100/9
Question. Prince sold a watch to deepak at 20% profit. Deepak sold it to Pushpendra at 25% profit. If Pushpendra paid 900rs , then Prince had purchased the watch ?
Solution: Let Prince’s cost price=100
Prince selling price= 100*(100+20)/100
=120
Deepak’s cost price=120 rs
Deepak’s selling price=120*(100+25)/100
=150
Pushpendra’s cost price=150rs
If Pushpendra cost price is 150 , then Prince cost price=100 rs
Hence if Pushpendra’s cost price is rs 900, then Prince’s cost price
=(100/150)*900
=600 Rs
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