Profit and Loss Formulae and Examples

In this class, We discuss Profit and Loss Formulae and Examples.

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Cost Price: The Price at which an article is purchased or manufactured is called the cost price.

Selling Price: The Price at which the article sold is called the selling Price.

Gain: if SP > CP then gain = SP – CP

Loss: if CP > SP then Loss = CP – SP

Gain Percentage = (Gain/CP) * 100

Loss Percentage = (Loss/CP) * 100

Example: A man buys an article for Rs 27.50 and sells it for Rs 28.60.

Find the gain percent.

Solution:

Gain = SP – CP

Gain = 28.60 – 27.50

= 1.10

Gain percent = (1.10/27.50) * 100 = 4%

The selling price given gain percentage

If an article sells at a gain of 35%, then the selling price = 135% of CP

SP = (135/100)* CP

SP = ((100+35)/100)* CP

SP = ((100 + Gain%)/100 * CP

Selling Price given Loss Percentage

If an article sells at a loss of 35%, the SP = 65% of CP

SP = (65/100) * CP

SP = ((100-35)/100)* CP

SP = ((100-Loss%)/100)*CP

Similarly, we can identify CP when SP and gain percentage are available.

The above equation takes the values to the other side and finds CP.

Example:

Find the selling price when the cost price = 56.25 and the gain percentage = 20.

Solution:

SP = 120% of 56.25

= (120/100)* 56.25

= 67.50