Tricks To Solve Profit & Loss Problems

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: