Profit and loss:
Basic definitions:
• Cost price (C.P.): This is the price at which an article is purchased.
• Selling price (S.P.): This is the price at which an article is sold.
• Profit or Gain: If the selling price is more than the cost price, the difference between them is the profit incurred.
Profit or Gain = S.P. - C.P.
• Loss: If the selling price is less than the cost price, the difference between them is the loss incurred.
Loss = C.P. - S.P.
• Profit or loss is always calculated on the cost price.
• Marked price: This is the price marked as the selling price on an article, also known as the listed price.
• Discount or Rebate: This is the reduction in price offered on the marked or listed price.
Below is the list of some basic formulae
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If there is a loss of 40%, approximately what is the value of n?
Solution:
Let the price of each pen be Re. 1.
Then the cost price of n pens is Rs. n and the selling price of n pens is Rs. 10.
Loss = n-10.
Loss of 40% (loss/CP)*100 = 40
Therefore, [(n-10)/n]*100 = 40 n = 17 (appro.)
6) A dishonest merchant sells his grocery using weights 15% less than the true weights and makes a profit of 20%. Find his total gain percentage.
Solution:
Let us consider 1 kg of grocery bag. Its actual weight is 85% of 1000 gm = 850 gm.
Let the cost price of each gram be Re. 1. Then the CP of each bag = Rs. 850.
SP of 1 kg of bag = 120% of the true CP
Therefore, SP = 120/100 * 1000 = Rs. 1200.
Gain = 1200 – 850 = 350
Hence Gain% = 350/850 * 100 = 41.17%
7) A man bought two bicycles for Rs. 2500 each. If he sells one at a profit of 5%, then how much should he sell the other so that he makes a profit of 20% on the whole?
Solution:
Before we start, it’s important to note here that it is not 15% to be added to 5% to make it a total of 20%.
Let the other profit percent be x.
Then, our equation looks like this.
(105/100) * 2500 + [(100+x)/100] * 2500 = 120/100 * 5000 x=
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So the article was marked at Rs. 6000.
Cost price of the article = [100/(100+80)]*3600 = Rs. 2000.
It is important to note here that this DOES NOT equal to a 45% discount on the whole. When different discounts are applied successively, they CANNOT be added.
Solve the following:
1) If the loss incurred in a transaction is 3/5th of the selling price, find the loss percent.
a) 37
b) 37.5
c) 37.75
d)none
Answer: b
Explanation:
Let the selling price be x. loss is 3x/5.
Cost price = Selling price + loss = x + 3x/5 = 8x/5
Loss% = (3x/5) / (8x/5) * 100 = 37.5%
2) After applying successive discounts of 10% and 5% on an article, it was sold at Rs. 513. Find the marked price of the article.
a) Rs. 590
b) Rs. 600
c) Rs. 603.5
d) None
Answer: b
Explanation:
90/100 * 95/100 * x = 513 x = 600
3) A sells a set of books to B for Rs. 300 at a profit of 25%. B sells it to C at a loss of 10%.
i) What was the original price paid by A? ii) What was the price paid by C to B?
a) 240, 260
b) 250, 270
c) 250, 260
d) 240, 270
Answer : d
Explanation:
i) Price paid by A (cost price paid by A) = [100/(100+25)]*300 = Rs. 240 ii) Price paid by C (Selling price by B to C) = [(100-10)/100]*300 = Rs.
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