# Profit And Loss

**To make profit is the basic aim of any business.**

**Cost Price:**It 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.

**Profit:**If 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

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.