IMPORTANT FACTS Cost Price: The price, at which an article is purchased, is called its cost price, abbreviated as C.P.

Selling Price: The price, at which an article is sold, is called its selling prices, abbreviated as S.P. Profit or Gain: If S.P. is greater than C.P., the seller is said to have a profit or gain. Loss: If S.P. is less than C.P., the seller is said to have incurred a loss. IMPORTANT FORMULAE 1. 2. 3. 4. Gain = (S.P.) - (C.P.) Loss = (C.P.) - (S.P.) Loss or gain is always reckoned on C.P. Gain Percentage: (Gain %) Gain % = Gain x 100 C.P.

5. Loss Percentage: (Loss %) Loss % = Loss x 100 C.P.

6. Selling Price: (S.P.) SP = (100 + Gain %) x C.P 100

7. Selling Price: (S.P.) SP = (100 - Loss %) x C.P. 100

8. Cost Price: (C.P.) C.P. = 100 x S.P.

(100 + Gain %) 9. Cost Price: (C.P.) C.P. = 100 x S.P. (100 - Loss %)

10. If an article is sold at a gain of say 35%, then S.P. = 135% of C.P. 11. If an article is sold at a loss of say, 35% then S.P. = 65% of C.P. 12. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by: Loss % = Common Loss and Gain % x 2= 2. 10 10

13. If a trader professes to sell his goods at cost price, but uses false weights, then Gain % = Error x 100 (True Value) - (Error) %.

1. Alfred buys an old scooter for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the scooter for Rs. 5800, his gain percent is: 4 5 A.4 % B. 5 % 7 11 C. 10% D.12% Answer & Explanation Answer: Option B Explanation: Cost Price (C.P.) = Rs. (4700 + 800) = Rs. 5500. Selling Price (S.P.) = Rs. 5800. Gain = (S.P.) - (C.P.) = Rs.(5800 - 5500) = Rs. 300. 300 5 x 100 = 5 % 5500 % 11 View Answer Workspace Report Discuss in Forum Gain % = 2. The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%, then the value of x is: A.15 B. 16 C. 18 D.25

Answer & Explanation Answer: Option B Explanation: Let C.P. of each article be Re. 1 C.P. of x articles = Rs. x. S.P. of x articles = Rs. 20. Profit = Rs. (20 - x). 20 - x x 100 = 25 x 2000 - 100x = 25x 125x = 2000 x = 16. View Answer Workspace Report Discuss in Forum 3. If selling price is doubled, the profit triples. Find the profit percent. 2 A.66 B. 100 3 1 C. 105 D.120 3 Answer & Explanation Answer: Option B Explanation: Let C.P. be Rs. x and S.P. be Rs. y. Then, 3(y - x) = (2y - x) y = 2x.

Profit = Rs. (y - x) = Rs. (2x - x) = Rs. x. x x 100 x % = 100% View Answer Workspace Report Discuss in Forum Profit % = 4. In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit?

A.30% C. 100% Answer & Explanation Answer: Option B Explanation:

B. 70% D.250%

Let C.P.= Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420. New C.P. = 125% of Rs. 100 = Rs. 125 New S.P. = Rs. 420. Profit = Rs. (420 - 125) = Rs. 295. 295 1475 x 100 = % = 70% (approximately). 420 % 21 View Answer Workspace Report Discuss in Forum Required percentage = 5. A vendor bought toffees at 6 for a rupee. How many for a rupee must he sell to gain 20%? A.3 B. 4 C. 5 D.6 Answer & Explanation Answer: Option C Explanation: C.P. of 6 toffees = Re. 1 S.P. of 6 toffees = 120% of Re. 1 = Rs. 6 For Rs. , toffees sold = 6. 5 5 = 5. 6 6. The percentage profit earned by selling an article for Rs. 1920 is equal to the percentage loss incurred by selling the same article for Rs. 1280. At what price should the article be sold to make 25% profit? A.Rs. 2000 B. Rs. 2200 C. Rs. 2400 D.Data inadequate Answer & Explanation For Re. 1, toffees sold = 6 x Answer: Option A 6 5

Explanation: Let C.P. be Rs. x. Then, 1920 - x x - 1280 x 100 = x 100 x x

1920 - x = x - 1280 2x = 3200 x = 1600 125 x 1600 = Rs 2000. 100 View Answer Workspace Report Discuss in Forum Required S.P. = 125% of Rs. 1600 = Rs. 7. A shopkeeper expects a gain of 22.5% on his cost price. If in a week, his sale was of Rs. 392, what was his profit? A.Rs. 18.20 B. Rs. 70 C. Rs. 72 D.Rs. 88.25 Answer & Explanation Answer: Option C Explanation: C.P. = Rs. 100 1000 x 392 = Rs. x 392 = Rs. 320 122.5 1225

Profit = Rs. (392 - 320) = Rs. 72. View Answer Workspace Report Discuss in Forum 8. A man buys a cycle for Rs. 1400 and sells it at a loss of 15%. What is the selling price of the cycle? A.Rs. 1090 B. Rs. 1160 C. Rs. 1190 D.Rs. 1202 Answer & Explanation Answer: Option C Explanation: S.P. = 85% of Rs. 1400 = Rs. 85 x 1400 = Rs. 1190 100

View Answer Workspace Report Discuss in Forum 9. Sam purchased 20 dozens of toys at the rate of Rs. 375 per dozen. He sold each one of them at the rate of Rs. 33. What was his percentage profit? A.3.5 B. 4.5 C. 5.6 D.6.5 Answer & Explanation Answer: Option C Explanation: Cost Price of 1 toy = Rs. 375 = Rs. 31.25 12

Selling Price of 1 toy = Rs. 33 So, Gain = Rs. (33 - 31.25) = Rs. 1.75 1.75 28 x 100 = % = 5.6% 31.25 % 5 View Answer Workspace Report Discuss in Forum Profit % = 10. Some articles were bought at 6 articles for Rs. 5 and sold at 5 articles for Rs. 6. Gain percent is: 1 A.30% B. 33 % 3 C. 35% D.44% Answer & Explanation Answer: Option D Explanation: Suppose, number of articles bought = L.C.M. of 6 and 5 = 30. 5 x 30 = Rs. 25. 6 6 S.P. of 30 articles = Rs. x 30 = Rs. 36. 5 11 Gain % = x 100 25 % = 44%. 11. On selling 17 balls at Rs. 720, there is a loss equal to the cost price of 5 balls. The cost price of a ball is: A.Rs. 45 B. Rs. 50 C. Rs. 55 D.Rs. 60 C.P. of 30 articles = Rs.

Answer & Explanation Answer: Option D Explanation: (C.P. of 17 balls) - (S.P. of 17 balls) = (C.P. of 5 balls) C.P. of 12 balls = S.P. of 17 balls = Rs.720. 720 = Rs. 60. 12 View Answer Workspace Report Discuss in Forum C.P. of 1 ball = Rs. 12. When a plot is sold for Rs. 18,700, the owner loses 15%. At what price must that plot be sold in order to gain 15%? A.Rs. 21,000 B. Rs. 22,500 C. Rs. 25,300 D.Rs. 25,800 Answer & Explanation Answer: Option C Explanation: 85 : 18700 = 115 : x x= 18700 x 115 = 25300. 85

Hence, S.P. = Rs. 25,300. View Answer Workspace Report Discuss in Forum 13. 100 oranges are bought at the rate of Rs. 350 and sold at the rate of Rs. 48 per dozen. The percentage of profit or loss is: 2 A.14 % gain B. 15% gain 7 2 C. 14 % loss D.15 % loss 7 Answer & Explanation Answer: Option A Explanation: C.P. of 1 orange = Rs. 350 = Rs. 3.50

100 48 S.P. of 1 orange = Rs. = Rs. 4 12 0.50 100 2 Gain% = x 100 = % = 14 % 3.50 7 % 7 View Answer Workspace Report Discuss in Forum 14. A shopkeeper sells one transistor for Rs. 840 at a gain of 20% and another for Rs. 960 at a loss of 4%. His total gain or loss percent is: 15 15 A.5 % loss B. 5 % gain 17 17 2 C. 6 % gain D.None of these 3 Answer & Explanation Answer: Option B Explanation: 100 x 840 = Rs. 700. 120 100 C.P. of 2nd transistor = Rs. x 960 = Rs. 1000 96 C.P. of 1st transistor = Rs. So, total C.P. = Rs. (700 + 1000) = Rs. 1700. Total S.P. = Rs. (840 + 960) = Rs. 1800. 100 15 x 100 = 5 % 1700 % 17 View Answer Workspace Report Discuss in Forum Gain % = 15. A trader mixes 26 kg of rice at Rs. 20 per kg with 30 kg of rice of other variety at Rs. 36 per kg and sells the mixture at Rs. 30 per kg. His profit percent is: A.No profit, no loss B. 5% C. 8% D.10% E. None of these Answer & Explanation Answer: Option B Explanation: C.P. of 56 kg rice = Rs. (26 x 20 + 30 x 36) = Rs. (520 + 1080) = Rs. 1600.

S.P. of 56 kg rice = Rs. (56 x 30) = Rs. 1680. Gain = 80 x 100

% = 5%. 1. A shopkeeper sells some articles at the profit of 25% on the original price. What is the exact amount of profit? To find the answer, which of the following information given in Statements I and II is/are necessary? I. Sale price of the article II. Number of articles sold A.Only I is necessary B. Only II is necessary C. Either I or II is necessary D.Both I and II are necessary E. None of these Answer & Explanation Answer: Option D Explanation: Gain = 25% of C.P. In order to find gain, we must know the sale price of each article and the number of articles sold. Correct answer is (D). View Answer Workspace Report Discuss in Forum 2. A shopkeeper sells some toys at Rs. 250 each. What percent profit does he make? To find the answer, which of the following information given in Statements I and II is/are necessary? I. Number of toys sold. II. Cost price of each toy. A.Only I is necessary B. Only II is necessary C. Both I and II are necessary D.Either I or II ins necessary E. None of these Answer & Explanation Answer: Option B Explanation: S.P. = Rs. 250 each.

To find gain percent, we must know the C.P. of each. Correct answer is (B).
.

2. A shopkeeper sells some toys at Rs. 250 each. What percent profit does he make? To find the answer, which of the following information given in Statements I and II is/are necessary? I. Number of toys sold. II. Cost price of each toy. [A].Only I is necessary [B]. Only II is necessary [C].Both I and II are necessary [D].Either I or II ins necessary [E]. None of these Answer: Option B Explanation: S.P. = Rs. 250 each. To find gain percent, we must know the C.P. of each. Correct answer is (B). Workspace Report error
Bishnu Gautam said: (Thu, May 19, 2011 07:22:15 AM)

A dealer bought 60 hats at Rs. 25 each. He sold 20 hats at Rs. 35 each and another 20 at Rs. 30 each. At what rate should he sell the remaining hats to make a profit of 20% in the total outlay? Show all the process.

Chandan said: (Sat, May 21, 2011 11:18:54 PM)

CP of 60 hats = 60*25 = 1500 20% gain on this means ,he should get 1800 He sold 20 at 35rs = 700 He sold another 20 at 30 = 600 Total he has is 1300rs He should get [1800-1300]500rs more to reach 1800 and make 20% profit hence he has to sell the left 20 hats to get 500 500/20 = 25rs each

Profit and loss is the branch of basic mathematics which deals with the study of profit and loss made in a business transaction. Profit and loss is mainly used in finance and business transactions. Some important profit and loss formulas are : Notations used in profit and loss: S.P. Selling price C.P. Cost price M.P. Marked Price Profit and Loss Formulas: 1. Profit or Gain = S.P. C.P. [ profit is made only when S.P. is greater then C.P.] 2. Loss = C.P S.P. [ Loss id made only when C.P. is greater than S.P.] 3. Profit % = (Actual Profit C.P. ) 100% 4. Loss % = (Actual loss C.P. ) 100% 5. C.P. = (S.P. 100 ) (100 + profit%) [If profit is made] 6. C.P. = (S.P. 100 ) (100 profit%) [If loss is made] 7. S.P. = (100 + profit%) C.P 100 [If profit is made] 8. S.P. = (100 loss%) C.P 100 [If loss is made] 9. Actual Discount = M.P. S.P. 10. Discount% = (Actual Discount M.P.) 100% 11. S.P. = M.P. Actual Discount 12. S.P. = M.P. Discount% of M.P. 13. S.P. = (100 Discount%) of M.P. Manufacturer produces goods at a certain cost. If goods are sold at a higher price than the cost price, then the manufacturer makes a profit or gain. But, if for some reason, the manufacturer sells goods at lower price than the cost price, then he suffers a loss.

Thus Profit = Selling Price Cost price Loss = Cost Price Selling Price Suppose, a person bought a book of Rs.100 and sold it for Rs.120. He makes a profit of Rs.20 i.e. Profit = 120 100 = Rs.20 Similarly if a person bought a machine for Rs.500 and sold it for Rs.400, then he make a loss of Rs.100 i.e. Loss = 500 400 = Rs.100 Percentage Profit and Percentage Loss: For the purpose of comparison, we usually express the actual profits or loss as a percentage of cost price. e.g. a shopkeeper sold an article for Rs.60 which costs Rs.50 and another article sold for Rs.110 which cost Rs.100. In each case, shopkeeper makes a profit of Rs.10. It seems that in both cases profit is equally gained. But in percentage profit, we have Percentage Profit = x 100% = 20%

Percentage Profit = x 100% = 10% Hence, in first case he made a more profit than in 2nd case, this is better and accurate method for comparison. Example: A bag costing Rs.28 sold for Rs.35. Find percentage profit. Solution: Let Cost Price = Rs.28 Selling Price = Rs.35 Profit = Selling Price Cost Price = 35 28 = Rs.7 Percentage Profit = x 100% = 25% Example: A machine costing Rs.60 and sold for Rs.50. Find percentage loss. Solution: Let Cost Price = Rs.60 Sold Price = Rs.50 Loss = Cost Price Sold Price = 60 50 = Rs.10 Percentage Loss = x 100% = %

Example: Let a bookseller gain 30% by selling a book for Rs.65. Find the cost price of the book. Solution: Let be the cost price Profit = 30% of =

But Profit = Selling Price Cost Price

The question is from profit, loss, discounts, an Arithmetic Topic and the problem provides an understanding of the concept of discount and mark up.

Question
If a merchant offers a discount of 40% on the marked price of his goods and thus ends up selling at cost price, what was the % mark up? 1. 2. 3. 4. 28.57% 40% 66.66% 58.33%

Correct Answer - 66.66%. Choice (3). Explanatory Answer If the merchant offers a discount of 40% on the marked price, then the goods are sold at 60% of the marked price. The question further states that when the discount offered is 40%, the merchant sells at cost price. Therefore, selling @ 40% discount = 60% of marked price (M) = cost price (C)

or i.e., a mark up 66.66% The question given below is a sample practice problem in Profits, Discounts and Markup. It is an Arithmetic Topic and the problem provides an understanding of the core concept related to profits and discounts.

Question
If a merchant offers a discount of 30% on the list price, then she makes a loss of 16%. What % profit or % loss will she make if she sells at a discount of 10% of the list price? 1. 2. 3. 4. 6% loss 0.8% profit 6.25% loss 8% profit

Correct Answer - 8% profit. Choice (4) Explanatory Answer Let the cost price of the article be Rs.100. Let the List price of the article by "x". Then, when the merchant offers a discount of 30%, the merchant will sell the article at x - 30% of x = 70% of x = 0.7x. .......(1) Note: Discount is measured as a percentage of list price. The loss made by the merchant when she offers a discount of 30% is 16%. Therefore, the merchant would have got 100 - 16% of 100 = Rs.84 when she offered a discount of 30%. .......(2) Note: Loss is always measured as a percentage of cost price. Therefore, equating equations (1) and (2), we get 0.7x = 84 or x = 120. If the list price is Rs.120 (our assumption of cost price is Rs.100), then when the merchant offers a discount of 10%, she will sell the article at 120 - 10%o of 120 = Rs.108. As the cost price of the article was Rs.100 and the merchant gets Rs.108 while offering a discount of 10%, she will make a profit of 8%.
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