Finding Profit or Loss

By: Mae Therese A. Peronce,MBA

 Profit and Loss Basic Concepts

 Profit and Loss formula is used in mathematics to

determine the price of a commodity in the market and
understand how profitable a business is.

 Every product has a cost price and a selling price. Based

on the values of these prices, we can calculate the profit
gained or the loss incurred for a particular product.
 Points to Remember
Profit(P)-The amount gained by selling a product for more than its
cost price.
Loss(L)-The amount the seller incurs after selling the product less
than its cost price is mentioned as a loss.
Cost Price (CP)-The amount paid for a product or commodity to
purchase is called a cost price.
Selling Price (SP)-The amount for which the product is sold is called
the Selling Price. It is usually denoted as SP. Also, sometimes called
a sale price.
Net profit-The difference in the amount of the Selling Price and the
Cost price
Net loss-The difference between the amount of Cost Price and the
Selling Price
 Important Points

 For profit, the selling price should be more than the cost
price
 For loss, the cost price should be more than the selling
price
 The percentage value for profit and loss is calculated in
terms of cost price
General formula to find whether there is profit or loss:

 Profit or Gain = S.P. - C.P. = Selling Price - Cost Price

 Loss = C.P. - S.P. = Cost Price - Selling Price
 Cost price = Selling price − profit ( when selling price and
profit is given )
 Cost price = Selling price + loss ( when selling price and
loss is given )
 Profit percentage (P%) = (Profit /Cost Price) x 100
 Loss percentage (L%) = (Loss / Cost price) x 100
 Solved examples on finding profit or loss:
1. A shopkeeper buys a football for $ 150 and sells it at
$210. What is his profit or loss?
Cost Price of foot ball = $ 150
Selling Price of foot ball = $ 210
210 > 150
As, S.P. > C.P.
So, he makes a profit
Profit = S.P. - C.P.
           = $ (210 - 150)
           = $ 60.
2. A merchant bought a table fan for $ 575 and sold for $
500. Find the loss of the merchant in the transaction?
Cost Price of the table fan = $ 575
Selling Price of the table fan = $ 500
Loss = Cost Price - Selling Price
       = $ (575 - 500)
       = $ 75
Therefore, loss of the merchant is $ 75.
3. A man bought 360 eggs at $ 18 per dozen. 40 egg where
broken and 20 egg were rotten. What would be his profit or
loss if he sells the rest at $ 20 per dozen?
As 12 things makes a dozen,
He bought = (360 ÷ 12) dozen
               = 30 dozen.
His cost price = $ 18 × 30 = $ 540
He sold total number of eggs = (360 - 40 - 20) = 300
Therefore, he sold = (300 ÷ 12) dozen eggs
                         = 25 dozen eggs.
His selling price = $ 25 × 20
                     = $ 500
As 500 < 540, that is S.P. < C.P.
He suffers a loss,
His loss = C.P. - S.P.
           = $ (540 - 500)
           = $ 40.
To find Cost Price or Selling Price when Profit or Loss is given:

To find cost price or selling price when profit or loss is given

are discussed here.
For example:

1. Maria sold a bicycle for $ 24900 at a profit of $ 600. Find

the price at which she bought it.
Solution:
Selling Price = $ 24900
Profit = $ 600
Cost Price = Selling Price – Profit
Cost Price = 24900 – 600 
= $ 24300
Therefore, Maria bought it at $ 24300.
Answer: $ 24300
2. Ron has a cycle worth $ 1800 and he wants to sell it at a
profit of $ 220. What should cycles selling price be?
Solution:
Cost Price = $ 1800
Profit = $ 220
Selling Price = Cost Price + Profit
Selling Price = 1800 + 220
= $ 2020
Selling price of the cycle = $ 2020
Answers: $ 2020
3. Diane sold a book worth $ 850 at a loss of $ 180. Find
the selling price of the book.
Solution:
Cost Price = $ 850
Loss = $ 180
Since, Selling Price = Cost Price - Loss
Selling Price = 850 - 180
= $670
Therefore, selling price of the book = $ 670
Answers: $ 670
4. If a chair was sold for $ 990 at a loss of $ 110. Find the
cost price of the chair.
Solution:
Selling Price = $ 990,
Loss = $ 110
Cost Price = Selling Price + Loss
Cost Price = 990 + 110
= $ 1100
Therefore, cost price of the chair = $ 1100
Answers: $ 1100
5. Suppose a shopkeeper has bought 1 kg of apples for
100. And sold it for 120 per kg. How much is the profit
gained by him?
Solution:
Cost Price for apples is 100.
Selling Price for apples is 120.
Then profit gained by shopkeeper is ; P = SP – CP
P = 120 – 100 = 20
6. From question#5 example, calculate the percentage of
the profit gained by the shopkeeper.

Solution:

We know, Profit percentage = (Profit /Cost Price) x 100

Therefore, Profit percentage = (20/100) x 100 = 20%.
7. A man buys a fan for 1000 and sells it at a loss of 15%. What
is the selling price of the fan?
Solution: Cost Price of the fan is 1000; Loss percentage is 15%
As we know, Loss percentage = (Loss/Cost Price) x 100
15 = (Loss/1000) x 100
Therefore, Loss = 150 Rs.
As we know,
Loss = Cost Price – Selling Price
So, Selling Price = Cost Price – Loss
= 1000 – 150
Selling Price = 850
 Profit and Loss Examples
 If a shopkeeper brings a cloth for 100 and sells it for 120,
he has made a profit of 20.
 If a salesperson has bought a textile material for 300 and
has to sell it for 250, he has gone through a loss of 50.
 Suppose Ram brings a football for 500 and sells it to his
friend for 600, then Ram has made a profit of 100 with a
gain percentage of 20%.
(These are some common examples of the profit and loss
concept in real life, which we observe regularly.)
 References

https://byjus.com/maths/profit-and-loss/#profit
Thank You!