# Profit And Loss

To make profit is the basic aim of any business.

Cost PriceIt is the price at which any article or unit or item is bought. It is abbreviated as CP.

Selling Price: It is the price at which any article or unit or item is sold. It is abbreviated as SP.

ProfitIf Selling Price is greater than Cost Price then seller makes profit.
Profit = SP – CP

Loss: If Cost Price is greater than Selling Price then seller incurs loss.
Loss = CP – SP

Basic Formulas:

One point is to be noted that loss or profit is always calculated with reference to CP.

# Shortcut Method For Profit And Loss

Example 1:

By selling goods for \$9000; a profit of \$1000 is made. Find the profit percent.

Solution:

Given, selling price of goods = \$9000 and profit made = \$1000
Therefore, C.P. = S.P. - profit
= \$9000 - \$1000
= \$8000
And, profit% = (profit/cost price) × 100%
= (1000/8000) × 100%
= (1/8) × 100%
= 12.5%
Therefore, profit percent by selling goods is 12.5%.

Example 2:

If the selling price of 20 books is the same as the cost price of 21 books. Find the profit percent.

Solution:

Let cost price of each book be \$1
Cost price of 20 books = \$1 × 20 = \$20.
Selling price of 20 books = cost price of 21 books = \$21.
Profit = selling price - cost price
= \$21 - \$20
= \$1
Profits% = profit/cost price × 100
= 1/20 × 100
= 100/20
= 5
Therefore, profit percent is 5%.

Example 3:

Harini sells two watches for \$ 1955 each, gaining 15% on one and losing 15% on the other. Find her gain or loss per cent in the whole transaction.

Solution:

SP of the first watch = \$ 1955.

Gain% = 15%.

Therefore, CP of the first watch = [{100/(100 + gain %)} × SP]

= \$ [{100/(100 + 15)} × 1955]

= \$ {(100/115) × 1955}

= \$ 1700.

SP of the second watch = \$ 1955.

Loss% = 15%.

CP of the second watch = [{100/(100 - loss %)} × SP]

= \$ [{100/(100 - 15)} × 1955]

= \$ {(100/85) × 1955}

= \$ 2300

Total CP of the two watches = \$ (1700 + 2300) = \$ 4000.

Total SP of the two watches = \$ (1955 × 2) = \$ 3910.

Since (SP) < (CP), there is a loss in the whole transaction.

Loss = \$ (4000 - 3910) = \$ 90.

Therefore, Loss% = {(90/4000) × 100} % = 21/4%

Hence, Harini loses 21/4% in the whole transaction.

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