Tuesday, 12 November 2013

Profit and Loss


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 price,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.

Formulae
                           
1.Gain=(S.P-C.P)
2.Loss=(C.P-S.P)
3.Loss or Gain is always reckoned on C.P.
4.Gain%=(gain*100)/C.P
5.Loss%=(loss*100)/C.P
6.S.P=[(100+gain%)/100]*C.P
7.S.P=[(100-loss%)/100]*C.P
8.C.P=(100*S.P)/(100+gain%)
9.C.P=(100*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 %/10]2=(x/10)2
13.If a trader professes to sell his goods at cost price,but uses 
false weight,then Gain%=[(error/(true value-error))*100]%
14.Net selling price=Marked price-Discount

                                                

Simple Problems

1.A man buys an article for Rs.27.50 and sells it for Rs.28.60 
Find the gain percent.

Sol:     C.P=Rs 27.50        S.P=Rs 28.60
         then Gain=S.P-C.P=28.60-27.50=Rs 1.10
        Gain%=(gain*100)/C.P%
             =(1.10*100)/27.50%=4% 

2.If a radio is purchased for Rs 490 and sold for Rs 465.50 
Find the loss%?

Sol:  C.P=Rs 490      S.P=Rs 465.50
        Loss=C.P-S.P=490-465.50=Rs 24.50
         Loss%=(loss*100)/C.P%
              =(24.50*100)/490%=5%

3.Find S.P when C.P=Rs 56.25 and Gain=20%

Sol:   S.P=[(100+gain%)/100]*C.P
      S.P=[(100+20)/100]56.25=Rs 67.50

4.Find S.P when C.P=Rs 80.40,loss=5%

Sol:    S.P=[(100-loss%)/100]*C.P
        S.P=[(100-5)/100]*80.40=Rs 68.34

5.Find C.P when S.P=Rs 40.60,gain=16%?

Sol:     C.P=(100*S.P)/(100+gain%)
         C.P=(100*40.60)/(100+16)=Rs 35

6.Find C.P when S.P=Rs 51.70 ,loss=12%?

Sol:     C.P=(100*S.P)/(100-loss%)
         C.P=(100*51.70)/(100-12)=Rs 58.75
	    
7.A person incurs 5% loss by selling a watch for Rs 1140 . At 
what price should the watch be sold to earn 5% profit?

Sol:  Let the new S.P be  Rs x then,
        (100-loss%):(1st S.P)=(100+gain%):(2nd S.P)
             (100-5)/1140=(100+5)/x
       x=(105*1140)/95=Rs 1260

8.If the cost price is 96% of the selling price,then what is
the profit percent?

Sol:       let S.P=Rs 100 then C.P=Rs 96 
             profit=S.P-C.P=100-96=Rs 4
             profit%=(profit*C.P)/100%
                    =(4*96)/100=4.17%

9.A discount dealer professes to sell his goods at cost price
but uses a weight of 960 gms for a Kg weight .Find his gain %?

Sol:             Gain%=[(error*100)/(true value-error)]%
                      =[(40*100)/1000-40)]%=25/6%

10.A man sold two flats for Rs 675,958 each .On one he gains 
16% while on the other he losses 16%.How much does he gain or
lose in the whole transaction?

Sol:         loss%=[common loss or gain%/10]2=(16/10)2=2.56%

11.A man sold two cows at Rs 1995 each. On one he lost 10% and
on the other he gained 10%.what his gain or loss percent?

Sol:      If loss% and gain% is equal to 10
             then there is no loss or no gain.

12.The price of an article is reduced by 25% in order to 
restore the must be increased by ?

Sol:      [x/(100-x)]*100 =[25/(100-25)]*100
                          =(25/75)*100=100/3%

13.Two discounts of 40% and 20% equal to a single discount of?

Sol:    {[(100-40)/100]*[(100-20)/100]}%=(60*80)/(100*100)%
                                        =48%
        single discount is equal to (100-48)%=52%
                                                
Difficult Problems 

1.The cost of an article including the sales tax is Rs 616.The 
rate of sales tax is 10%,if the shopkeeper has made a profit
of 12%,then the cost price of the article is?

Sol:       110% of S.P=616
              S.P=(616*100)/110=Rs 560
              C.P=(100*S.P)/(100+gain%)     
               C.P. =(100*560)/(100+12)=Rs 500

2.Sam purchased 20 dozens of toys at the rate of 375 Rs per dozen.
He sold each one of then at the rate of Rs 33.What was his 
percentage profit?

Sol:               C.P of one toy=Rs 375/12=Rs 31.25
                     S.P of one toy=Rs 33
                    profit=S.P-C.P=33-31.25=Rs 1.75
                    profit %=(profit/C.P)*100
                                 =(1.75/31.25)*100
                    profit% =5.6%

3.Two third of consignment was sold at a profit of 5% and the 
remainder at a loss of 2%.If the total was Rs 400,the value of the 
consignment was?

Sol:        let the total value be Rs x
              value of 2/3=2x/3,     value of 1/3=x/3
              total S.P value be Rs x
              total S.P=[(105% of 2x/3)+(98% of x/3)]
                           =(105*2x)/(100*3)+(98/100)+x/3
                               =308x/300
                  (308x/300)-x=400
                             8x/300=400
                              x=(300*400)/8=Rs 15000

4.Kunal bought a suitcase with 15% discount on the labelled price. 
He sold the suitcase for Rs 2880 with 20% profit on the labelled
price .At what price did he buy the suitcase?

Sol:      let the labelled price be Rs x 
            then 120% of x=2880
              x=(2880*100)/120=Rs 2400
               C.P=85% of the 2400
              (85*2400)/100=Rs 2040

5.A tradesman gives 4% discount on the marked price and gives 
article free for buying every 15 articles and thus gains 35%. The
marked price is above the cost price by

Sol:    let the C.P of each article be Rs 100
         then C.P of 16 articles=Rs (100*16)=Rs 1600
         S.P of 15 articles =1600*(135/100)=Rs 2160
          S.P of each article =2160/15=Rs 144
          If S.P is Rs 96, marked price =Rs 100
          If S.P is Rs 144,marked price =(100/96)*144=Rs 15000     
         therefore marked price=50% above C.P

6.By selling 33m of cloth ,one gains the selling price of 11m.Find 
the gain percent?

Sol:       gain=S.P of 33m-C.P of 33m
                   =11m of S.P
              S.P of 22m=C.P of 33m
     let C.P of each meter be Rs 1,then C.P of 22m=Rs 22
             S.P of 22m=Rs 33  
             gain=S.P-C.P=33-22=Rs 11
             gain%=(gain/C.P)*100
                  =(11/22)*100=50%
                                                

7.The price of a jewel, passing through three hands, rises on the 
whole by 65%.if the first and second sellers earned 20% and 25% 
profit respectively,find the percentage profit earned by  the 
third seller?

Sol:    let the original price of the jewel be Rs P and 
           let the profit earned by the third seller  be x%
           then (100+x)% of 125% of P=165% of P
           [(100+x)/100]*(125/100)*(120/100)*P=(165/100)*P
                    100+x=(165*100*100)/(125*120)
                     100+x=110
                       x=10%

8.When a producer allows 36% commission on the retail price of his
product ,he earns a profit of 8.8%.what would be his profit
percent if the commission is reduced by 24%

Sol:      let retail price =Rs 100
              commission=Rs 36
            S.P=retail price-commission=100-36=Rs 64
           But profit=8.8%
          C.P=(100*C.P)/(gain+100)=(100*64)/(100+8.8)=Rs 1000/17
         new commission=Rs 12
         new S.P=100-12=Rs 88 
             gain=88-(1000/17)=Rs 496/17
             gain%=gain*100/C.P
                      =(496*17*100)(17*1000)   
              gain%=49.6%

9.Vikas bought paper sheets for Rs 7200 and spent Rs 200 on 
transport. Paying Rs 600,he had 330 boxes made,which he sold
at Rs 28 each. His profit percentage is

Sol:        total investments=7200+200+600=Rs 8000
               total receipt=330*28=Rs 9240
              gain=S.P-C.P
                    =total receipt-total investments
               gain=9240-8000=Rs 1240
              gain% =gain*100/C.P=1240*100/8000=15.5%

10.A person earns 15% on investment  but loses 10% on another 
investment .If the ratio of the two investments be 3:5 ,what is the
gain  or loss on the two investments taken together?

Sol:    let the investments be 3x and 5x
          then total investment=8x
         total receipt=115% of 3x+90% of 5x
                      =115*3x/100+90*5x/100=7.95x
           loss=C.P-S.P=8x-7.95x=0.05x
          loss%=.05x*100/8x=0.625%

11.The profit earned by selling an article for Rs 900 is double the
loss incurred when the same article is sold for Rs 490 .At what
price should the article be sold to make 25% profit?

Sol:                   let C.P be Rs x
                         900-x=2(x-450)
                               3x=1800
                               x=Rs 600
                            C.P=Rs 600 , gain required=25%
                              S.P=(100+gain%)*C.P/100
                             S.P=(100+25)*600/100=Rs 750

12.If an article is sold at 5% gain instead of 5% loss,the seller
gets Rs 6.72 more. The C.P of the article is?

Sol:           let C.P be Rs x
                 105% of x-95% of x=6.72
                 (105/100)*x-(95/100)*x=6.72
                      x/10=6.72
                      x=Rs 67.21.

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