Profit and Loss

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Theory

Profit, Loss and Discount is an easy topic in quantitative section. Every year, a small number of questions appear from this section and good students should aim to get all the questions right from this topic. The number of concepts in these topics is limited and most of the problems can be solved by applying the formulae directly. Many students commit silly mistakes in this topic due to complacency and this should be avoided.

Formula

The cost price of an article is C.P, the selling price is S.P and the marked price is M.P
Profit (Loss) = S.P – C.P
% Profit (Loss) = Profit (Loss)/C.P *100

Formula

Discount = M.P – S.P
% Discount = Discount/M.P * 100

Tip

Total change in price due to two subsequent changes of X% and Y% is (X+Y+XY/100)%

Solved Example

A merchant bought some goods worth 6000 Rupees and sold half of them at 12% profit. At what profit percent should he sell the rest to get a profit of 18% overall. (IBPS Clerk 2013 exam)
Explanation:
Profit on all goods is 18% of 6000 = 1080.
Profit on half the goods = 12% of 3000 = 360
So, the profit on the other half = 1080 – 360 = 720
So, profit percentage = 720/3000 *100 = 24%

Solved Example

Niraj incurred a loss of 55% on selling an article for Rs. 9549. What is the cost price of the article? (IBPS Clerk 2011 exam)
Explanation:
(CP – 9549)/(CP)= 55%
Solving, we get 0.45*CP = 9549. Therefore, CP = 21220.

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