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