Tricks To Solve Profit & Loss Problems
Profit & Loss is a basic concept of arithmetic in which we study the gain or loss in a business transaction.Profit & loss are the terms related to transactions in trade & business.Whenever a purchase article is sold, then either profit is earned or loss is incurred.This topic teaches us how to calculate such profit & loss.
Cost Price (CP): The price at which an article is purchased.
Selling Price (SP): The Price at which an article is sold.
Marked Price (MP) or List Price: The price that is indicated or marked on the article.It is sometimes also referred to as label price.
Discount: It is reduction offered on the marked price.
Profit = SP – CP
Profit % = (Profit/CP) * 100
SP = [(100 + Profit %)/100] * CP
Loss = CP – SP
Loss % = (Loss/CP) * 100
SP = [(100 – Loss %)/100] * CP
Few Basic Concepts:
- When there are 2 successive profit of x% and y%, then the resultant profit percent is given by:
- If there is a profit of x% and loss of y% in a transaction, then the resultant profit or loss % is given by:
- If CP of ‘m’ articles is equal to SP of ‘n’ articles, then Profit % is given by:
- A single discount equivalent to discount series of x% and y% given by the seller is equal to:
- If a seller marks his goods at x% above his CP and allows purchasers a discount of y% for cash, then overall profit or loss will be:
- If a trader professes to sell his goods at CP, but uses false weights,then: