Profit Loss and Discount: Formula and Tricks with Problem (Question) and Solutions

Cost Price

The price at which an article is purchased, is called cost price (CP).

Overhead Charges

When an article is purchased, there are some expenses like labour, maintenance etc, these charges are
called as overhead charges. These charges are always added in the cost price.

Actual cost price = cost price + overhead charges.

Selling Price

The price at which an article is sold, is called selling price (SP). Profit If selling price of an article is
more than its cost price, then there will be a profit.

Profit = SP – CP

Loss

If selling price of an article is less than its cost price, then there will be a loss

Loss = CP – SP

Profit & Loss are always calculated on cost price.

Marked Price

The price printed on the article is known as marked price (MP).

Discount

The reduction in the price of an article by shopkeeper to attract his customers, is called discount. It is always calculated on marked price

Discount = Marked Price – Selling Price

Basic Formula

Profit Loss

Ex: A man purchased a toy for 25 and sold it for 30. The profit % is
(a) 5%
(b)2.5%
(c) 20%
(d) 10 %

Profit

Important Formulae

Formula 1

If an article is sold for Rs. A at a profit (or a loss) r %, then to get a profit (or loss) of R %, the selling price would r % then to get a be

Ex: A person wanted to sell his goods at a profit of 20%, but actually has sold it for 480 Rs. at a loss of 20%, The price at which it has to be sold to get a profit of 20%, will be

(a)720

(b)840

(c)600

(d) 700

Formula 2

If by selling any two articles at same price, there is a profit of r % on one and a loss of r % on the other article. There is always a loss of

Ex:A man sold two watches, each for 495. If he gained 10% on one watch and suffered a loss of 10% on the other, then what is the loss or gain percentage in the transaction?

(a)1 % gain

(b)1 % loss

(c)Neither loss nor gain

(d) 0.9 % loss

Formula 3

Ex.If CP  of 15 articles is equal to SP of 12 articles, then profit % will be

(a)15 %

(b) 12.5 %

(c) 25 %

(d) 38.8 %

Formula 4

A seller sells his goods on CP but uses y gm weight in the place of x gm weight, then profit %

Ex. A dishonest dealer professes to sell his goods at cost price but uses a weight of 960 gm for 1 kg weight. What is his gain percentage?

Formula 5

Ex. What will be a single equivalent discount for successive discounts of 10 % and 5 % on marked price of an article?

(a)15 %

(b) 14.5 %

(c) 35 %

(d) 38.8 %

Formula 6

Ex.What is the single equivalent discount for successive discount of 10 %, 20 % and 15 % on marked price for motor bike?

(a)15 %

(b) 12.5 %

(c) 35 %

(d) 38.8 %

Formula 7

Ex. If a person marked the price 25 % above its cost price and allows a discount of 10%, the profit percentage will be

(a)15 %

(b) 12.5 %

(c) 35 %

(d) 18 %

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