Profit and Loss

The Resource Center

PROFIT
=
SP - CP

The Resource Center

LOSS
=
CP - SP

The Resource Center

A cloth merchant bought

20 shirts, each @ Rs 180.
He paid Rs 100 as octroi
charges. He sold each of
them for Rs 203.50. Find
his % profit
The Resource Center

Total cost =
cost of 20 shirts + Rs 100
= 3700
Cost / Shirt = 3700/20 = 185.
Selling price = 203.50.
Profit = 203.5 - 185 = 18.50
% Profit = (18.50/185) *100
= 10%
The Resource Center

X purchased 2 watches @
the same price, sold one
@ a profit of 10% and the
other @ 12.5%. If the
difference between the
two SP is Rs 15, what is
the the CP of each?
The Resource Center

Let the CP of the watch = 100

st
the SP of 1 watch = 110 &
nd
the SP of 2 watch = 112.5.
If the difference in the SP = 2.5,
then the CP = 100;
if the difference in SP = 15,
the CP = (100 * 15) / 2.5 = 600
The Resource Center

A fruit vendor buys apples

@ a score for Rs 175, and
sells them @ a dozen for
Rs 114. What was the
percentage of gain or
loss?
The Resource Center

CP = Rs.175/score
CP/Pineapple = 175/20 = 8.75
(Note: 1 score = 20)
SP = Rs 114/dozen
SP/Pineapple = 114/12 = 9.5
Profit = 0.75
% Profit = (0.75/8.75)*100
4
= 8 /7 %
The Resource Center

A man sells two tables at

the same price. On one
he makes a profit of 10%
and on the other he
makes a loss of 10%.
The Resource Center

If the SP of the tables was

Rs 1000 each, what was
the profit / loss in Rs and
what was the CP of each
of the tables?
The Resource Center

Net loss = % = 1% loss

If SP = A, the amount of loss =
2
2
2
2p A / (100 - p )
As the selling price = 1000,
2
2
2
loss =2*10 *1000 / 100 - 10
20
=2000/99 = 20 /99
The Resource Center

Cost price of the item sold on

profit
CP (1 + 0.1) = 1000.
1
CP = 1000/1.1 = 909 /11
Cost price of the item sold on
loss
CP (1 - 0.1) = 1000.
CP = 1000/0.9= 1111.11
The Resource Center

A floppy disc drive is sold

for Rs 935 at a profit of
10%. What would have
been the actual profit or
loss if it had been sold at
Rs 807.50?
The Resource Center

CP (1.1) = 935.
CP =935/1.1 = 850
If SP = Rs.807.50, then loss =
850 - 807.50 = 42.50
% Loss = (42.5/850)*100 = 5%

The Resource Center

Profit obtained by selling a

wrist watch at Rs 160 is
7 th
equal to /5 of the profit
obtained by selling the
same wrist watch at Rs
150. What is the CP?
The Resource Center

Let the cost of a watch be X

(160 - X) = 7/5* (150 - X)
800 - 5X = 1050 - 7X.
2X = 250
X = Rs.125

The Resource Center

R buys 20 kg of rice @ Rs
1.50/kg, and another 40
kg @ Rs 0.90/kg. R mixes
rd
them and sells 1/3 of the
mixture @ Re 1/kg.
The Resource Center

At what price should R

sell the remaining to get a
overall profit of 25%?

The Resource Center

Total cost for the entire quantity

of rice = 20*1.5 + 40*0.9 = 66
If Rs profit is 25% then the
sales realization = 1.25 * 66 =
82.50
R sells 20 kg at Re 1/kg =
Rs.20.
The Resource Center

Therefore to make the required

profit, R should sell the
remaining 40 kg at
(82.50 - 20) = Rs.62.50
The SP of a kg of rice for the
remaining 40 kgs =62.5/40 =
1.5625
The Resource Center

2000 copies of a book are

printed at Rs 8000. What
should be the list price if
the publisher wants 50%
profit after giving a 20%
discount on the list price?
The Resource Center

CP per book = 4
Profit to be made = 50%
SP = 1.5 * 4 = 6
Rs.6 should be the net price to
the publisher after a 20%
discount on the list price.
i.e List price * 0.8 = 6
List price = 6/0.8 = Rs.7.5
The Resource Center

What should each of the

sixty T-Shirts be sold at,
(the CP of each is Rs.25),
so as to get a profit equal
to the SP of 10 of them?
The Resource Center

SP of 10 T-Shirts =
(SP of 60 T-Shirts) (CP of 60 T-Shirts)
10 SP = 60 SP - 60 * 25
50 SP = 1500 SP = Rs.30
The Resource Center

5/8 of 160 chairs were

sold @ profit of Rs.25 and
the rest for Rs.8200. If the
seller makes 25% profit in
the transaction, what is
the CP of each?
th

The Resource Center

100 chairs were sold at a profit

of Rs.25 each. profit on these
100 chairs = 2500
S.P of all 160 chairs = C.P of
100 chairs + Profit on 100
chairs + S.P of 60 chairs
= 100 * C.P + 2500 + 8700 =
100 * C.P +10700
The Resource Center

But these 160 chairs were sold

at a profit of 25%.
SP = 1.25*CP
160*1.25*CP =
100*CP + 10700
200 CP = 100 CP + 10700
CP = 107
The Resource Center

If an article is sold at a
2
loss of 66 /3%, what is the
loss in terms of the selling
price?
The Resource Center

Let the C.P = 100.

Amount loss = 66 2/3*SP
= 100 - 66 2/3 = 33 1/3
Loss expressed in terms of SP
2
1
= 66 /3 / 33 /3* 100 = 200%

The Resource Center

A sells an article to B at a
profit of 5%. B sells the
same to C for Rs.1071 at
a profit of 2%. What did A
pay for it?
1071 / (1.05 * 1.02) = 1000
The Resource Center

X buys a camera for Rs

6000 and sells it to Y @
profit of 20%. Y sells it to
X @ loss of 10%. What
was the % gain to X?
The Resource Center

Transaction I: SP of X = CP of
Y = 1.2 * 6000 = 7200
Transaction II: SP of Y = CP of
X = 0.9 * 7200 = 6480
net profit to X = S.PX1 - S.PY2 =
7200 - 6480 = 720
% profit = (720/6000)*100 =
12%
The Resource Center

A package tour operator

allows 25% discount on
his advertised price and
then makes a profit of
20%. What is the
advertised price on which
he gains Rs.60?
The Resource Center

Profit = 60
Net price = 1.2 (C.P) 1.2 C.P C.P = 60 0.2 C.P = 60 C.P =
300 and Net price = 360.
List price * (0.75) = Net price
List price =Net.price/0.75
=360/0.75 = 480
The Resource Center

The CP of each of 1000

articles is Rs.0.85. Only
700 articles may be sold.
Fix the SP of these 700
articles so that there is a
profit of 40% on total cost.
What is profit on the CP?
The Resource Center

CP of 1000 articles = Rs.850

SP = 1.4*CP = 1190.
As only 700 articles can be
sold, you have to get Rs.1190
SP = 1190/700= Rs1.70.
Therefore, profit = Rs 0.85 and
% profit = 0.85/0.85 *100 =
100%
The Resource Center

A calculates % profit on
CP and R at the SP. Find
the difference between
their profits if both of them
claim to make 20% on
goods sold @ Rs.1500
The Resource Center

Case I: C.P(1.2) = 1500.

C.P = 1250 Profit =
1500 - 1250 = Rs250
Case II: Profit = 0.2 (S.P)
= 0.2 * 1500 = Rs300
The difference in profit made by
each of the tradesmen = Rs 50
The Resource Center

A estimates that on
inspection 20% of the
articles A produces will be
rejected. A takes an order
to supply 20,000 articles
at Rs.7.5 per item.
The Resource Center

A estimates the profit on

the outlay to be 20% after
providing for the rejects.
Find the cost of
manufacture per article.
The Resource Center

SP for 20,000 items = 150,000

No of items to be produced so
that after 20% rejection A still
has 20,000 items = 25,000
If A makes 20% profit, then CP
= 150000/1.2 = 125,000
Cost/item = 125000/25000 =
Rs.5
The Resource Center

A sold computers @ profit

of 6% . Had A made a loss
of 5% instead, A would
have sold it for Rs 3850
less. What was the CP
and SP in each of the
cases?
The Resource Center

CP (1.06) = SP1
CP (0.95) = SP2
SP1 - SP2 = 3850
CP (1.06 - 0.95) = 3850
C.P = 35,000
and SP1 = 1.06 * 35,000 =
37,100 and SP2 = 0.95 * 35,000
= 33,250
The Resource Center

It was discovered that the

yard stick used by a cloth
merchant who claimed to
sell at cost price
measured only 33 inches.
What was the % profit?
The Resource Center

the yard stick used = 33 inches,

33
th
11
th
he was measuring /36 = /12
of a yard.
if his cost was Re 1 and he sold
at Re 1, his CP was only Rs
11
1
/12 and profit was Rs /12
1
11
1
his % profit = ( /12) / ( /12) = /11
1
= 9 /11%
The Resource Center

A offers 25% discount on

the marked price. B offers
20% and a further
discount of 5% on that
price. As a buyer whom
should I buy from?
The Resource Center

A: If the marked price = 100

then price to the buyer = 75.
B: If the marked price = 100,
then the net price
= 0.8 * 0.95 * 100 = 76.
I should buy from A.
The Resource Center