__Profit__

& Loss Important formulas:& Loss Important formulas:

** Cost**The price for which an article is purchased is called the Cost Price

Price:

(C.P.)

**The price at which an article is sold is called the Selling Price (S.P.)**

__Selling price__:**The price for which an article**

__Market Price__:can be bought or sold i.e. the price at which the article is available to the

market.

**The difference between the selling price and the cost price (when**

__Profit or__

Gain:Gain

S.P. is more than C.P) is called the Profit.

__Loss__:The difference between the cost price and selling price (when C.P. is more than

S.P.) is called the Loss.

Loss or Gain is always Computation on the cost price only.

__Important Point to be Remember__: TheLoss or Gain is always Computation on the cost price only.

If,

Selling Price,

**S.P**=Selling Price,

**C.P**= Cost Price and**M.P**= Market Price,**Then the
important formulas for profit & loss are as bellow:**

__Question No. 01__**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:

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:

(A) 5 15

*/*17 % loss
(B) 5 15

*/*17 % gain
(C) 6 2

*/*3 % gain
(D) None of

these

these

Answer:

Option

Option

__Explanation:__
C.P. of 1st transistor

= Rs. {(100/120) × 840} = Rs. 700

= Rs. {(100/120) × 840} = Rs. 700

C.P. of 2nd transistor

= Rs. {(100/96) × 960} = Rs. 1000

= Rs. {(100/96) × 960} = Rs. 1000

So, total

C.P. = Rs. (700 + 1000) = Rs. 1700

C.P. = Rs. (700 + 1000) = Rs. 1700

Total S.P. =

Rs. (840 + 960) = Rs. 1800

Rs. (840 + 960) = Rs. 1800

∴ Gain

% = {(100/1700) × 100} % = 5 15

%

% = {(100/1700) × 100} % = 5 15

*/*17%

__Question No. 02__**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?

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%

(B) 70%

(C) 100%

(D) 250%

Answer:

Option B

Option B

__Explanation:__
Let C.P.=

Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420

Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420

New C.P. =

125% of Rs. 100 = Rs. 125

125% of Rs. 100 = Rs. 125

New S.P. =

Rs. 420

Rs. 420

Profit = Rs.

(420 – 125) = Rs. 295

(420 – 125) = Rs. 295

∴ Required

percentage = {(295/420) × 100} % = (1475/21) % = 70% (approximately).

percentage = {(295/420) × 100} % = (1475/21) % = 70% (approximately).

__Question No. 03__**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:

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

Answer:

Option D

Option D

__Explanation:__
(C.P. of 17

balls) – (S.P. of 17 balls) = (C.P. of 5 balls)

balls) – (S.P. of 17 balls) = (C.P. of 5 balls)

=> C.P. of 12 balls = S.P. of 17 balls

= Rs.720

= Rs.720

=> C.P.

of 1 ball = Rs. (720/12) = Rs. 60

of 1 ball = Rs. (720/12) = Rs. 60

__Question No. 04__**A vendor**

bought toffees at 6 for a rupee. How many for a rupee must he sell to gain 20%?

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:

Option C

Option C

__Explanation:__
C.P. of 6 toffees

= Re. 1

= Re. 1

S.P. of 6

toffees = 120% of Re. 1 = Rs. 6/5

toffees = 120% of Re. 1 = Rs. 6/5

For Rs. 6/5,

toffees sold = 6

toffees sold = 6

For Rs. 1,

toffees sold = {6 × (5/6)} = 5

toffees sold = {6 × (5/6)} = 5

__Question No. 05__**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?

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

18.20

(B) Rs. 70

(C) Rs. 72

(D) Rs.

88.25

88.25

Answer:

Option C

Option C

__Explanation:__
C.P. = Rs.

{(100/122.5) × 392} = Rs. {(1000/1225) × 392} = Rs. 320

{(100/122.5) × 392} = Rs. {(1000/1225) × 392} = Rs. 320

∴ Profit

= Rs. (392 – 320) = Rs. 72

= Rs. (392 – 320) = Rs. 72

__Question No. 06__**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?

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:

Option C

Option C

__Explanation:__
Cost Price

of 1 toy = Rs. (375/12) = Rs. 31.25

of 1 toy = Rs. (375/12) = Rs. 31.25

Selling

Price of 1 toy = Rs. 33

Price of 1 toy = Rs. 33

So, Gain =

Rs. (33 – 31.25) = Rs. 1.75

Rs. (33 – 31.25) = Rs. 1.75

∴ Profit

% = {(1.75/31.25) × 100} % = (28/5) % = 5.6%

% = {(1.75/31.25) × 100} % = (28/5) % = 5.6%

__Question No. 07__**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%?

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

21,000

(B) Rs.

22,500

22,500

(C) Rs.

25,300

25,300

(D) Rs.

25,800

25,800

Answer:

Option C

Option C

__Explanation:__
Here, 85 :

18700 = 115 :

18700 = 115 :

*x*
=>

= 25300

*x*= (18700 × 115)/85= 25300

Hence, S.P.

= Rs. 25,300.

= Rs. 25,300.

__Question No. 08__**If selling**

price is doubled, the profit triples. Find the profit percent.

price is doubled, the profit triples. Find the profit percent.

(A) 66⅔

(B) 100

(C) 105 1

*/*3
(D) 120

Answer:

Option B

Option B

__Explanation:__
Let C.P. be

Rs.

Rs.

*x*and S.P. be Rs.*y*
Then, 3(

= (2

*y*–*x*)= (2

*y*–*x*)
=>

2

*y*=2

*x*
Profit = Rs.

(

Rs.

(

*y*–*x*) = Rs. (2*x*–*x*) =Rs.

*x*
∴ Profit

% = {(

% = {(

*x*/*x*) x 100} % = 100%

__Question No. 09__**A man buys a**

cycle for Rs. 1400 and sells it at a loss of 15%. What is the selling price of

the cycle?

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:

Option C

Option C

__Explanation:__
S.P. = 85%

of Rs. 1400 = Rs. {(85/100) × 1400} = Rs. 1190

of Rs. 1400 = Rs. {(85/100) × 1400} = Rs. 1190

__Question No. 10__**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:

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:

(A) 14 2

*/*7 % gain
(B) 15 %

gain

gain

(C) 14 2

*/*7 % loss
(D) 15 %

loss

loss

Answer:

Option A

Option A

**Explanation:**
C.P. of 1

orange = Rs. (350/100) = Rs. 3.50

orange = Rs. (350/100) = Rs. 3.50

S.P. of 1

orange = Rs. (48/12) = Rs. 4

orange = Rs. (48/12) = Rs. 4

∴ Gain%

= {(0.50/3.50) × 100} % = (100/7) % = 14 2

= {(0.50/3.50) × 100} % = (100/7) % = 14 2

*/*7 %