Cheat Sheets –Profit and Loss

IMPORTANT FACTS
Cost Price: Is the buying price or the price influx to manufacturer any product.
Selling Price: Is the price at which the product is sold.
Profit or Gain: This is the difference between the Selling Price and Cost Price.
When the Selling price is more than the Cost Price then there is a profit.
Loss: When the Cost Price is more than the Selling Price then there is a
loss.
IMPORTANT FORMULAE

Terminology Formulae

Gain/Profit SP-CP

Loss CP -SP

Profit % Profit / CP X 100

Loss % Loss / CP X 100

Profit Profit % of CP

Loss Loss% of CP

SP CP X MF(multiplying factor)

Discount MP - SP (MP -- Marked Price)

Discount Discount % of MP

Discount % Discount /MP X100

Application of Profit and Loss:

Concept 1.
When two articles are sold for the same price and the loss & gain percent is the same. Then loss
will always occur.
Loss% = (x)2/100, where x is the loss and profit percent.
Concept 2
If the CP of two items is the same and the % loss & % gain on the two-item are equal, then the
net loss or net profit is zero.
Concept 3
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Cheat Sheets –Profit and Loss
Faulty Weights
Gain % = (Error) / (True weight - Error) / 100
Concept 4
Buy x get y free i.e., If x+y articles are sold at the cost price of x articles, then the percentage
discount = y /(x+y) X 100
Concept 5
In the case of successive discount, a% and b%, the effective discount is a+b+(ab/100) %
PRACTICE EXERCISE

1. Reema purchased a mobile for 5200 rupees, spent 100 rupees on its accessories and sold it
for 7000. Find the loss or gain percent.
A. 15.3%
B. 12.9%
C. 23.5%
D. 34.6%
2. Radhika opens a shop but she cheated her customers, she professes to sell her product at
cost price but weighs 830 grams for a kg of weight. What is the gain percent?
A. 17%
B. 20.4%
C. 25%
D. 34%
3. The cost price of 12 trousers is equal to the selling price of 10 trousers. Find the gain
percent.
A. 10%
B. 20%
C. 30%
D. 40%
4. Find a single discount equivalent to a series of discounts at 12%,23% and 44%.
A. 98.7%
B. 82.3%
C. 62%
D. None of these
5. A mixer grinder marked at 3500 rupees is sold to a shopkeeper at a successive discount of 25%
and 15%. The shopkeeper derives a profit of 30% of his cost price after allowing a 10%discount to
the customer. What will be the list price of the mixer grinder?
A. Rs 3220
B. Rs 3221
C. Rs 3222
D. Rs 3223
SOLUTIONS:

1. Option - B
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Cheat Sheets –Profit and Loss
The total cost to Reema = (5200+1000) = 6200
Gain = 7000 - 6200 = 800
Therefore, Loss % = 800/6200 X 100 = 12.9 %

2. Option - B
Let the CP of 1Kg be Rs 1000
Therefore, SP of 830 gm = Rs 1000
CP of 830 gm = Rs 830
Gain % = SP-CP/CP X 100
= 170/830 X 100
= 20.4%

3. Option - B
CP of 1 trouser = Rs x
SP of 10 trouser = Rs 12x
SP of 1 trouser = Rs 1.2 x
Gain % = 20%
OR (Shortcut)
(By comparing the ratio of SP to CP)
CP of 12 = SP of 10
SP/CP =12/10
= 1.2
Thus gain% = 20%

4. Option - C
Let MP = Rs 100
then, SP= 100 X 88/100 X 77/100 X 56/100
= 37.9
Discount = MP-SP
=100 -37.9
= 62.05 ≈ 62
OR (Shortcut)
Using the formula: a+b-ab/100
= 12+23 - 12x23/100
= 35 - 2.76 = 32.24
=32.24+44 -32.44X44/100
=76.24-14.27
= 61.96 ≈ 62

5. Option - D
CP = Rs. (3500 x .75 x .85) = 2231.25
SP = Rs (2231.25 x 1.3)
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Cheat Sheets –Profit and Loss
MP = Rs. (2231.25 x 1.3 x 100/90) = Rs 3222.9 ≈Rs 3223

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