Profit and loss

Profit and loss problems involves various terms like cost price, selling price, marked price etc. Basically, it is a difference between selling price and cost price. Cost price is the price paid to purchase an article or a product or we can say it is a cost incurred in manufacturing an article. Selling price is the price at which a product is sold.

Must read
Quantitative Aptitude series
Guide to Quantitative aptitude

Various profit and loss formulas used in profit and loss:

1) Generally, profit is calculated as:
                   Profit or gain = Selling price(S.P) - Cost price(C.P)
2) Similarly, Loss = Cost price - Selling price
3) Gain percentage(%) = Gain * 100
                                     C.P.
4) Loss percentage(%) = Loss * 100
                                     C.P.
5) There is a direct relat   &nsp;                 S.P. = 100 + Gain percentage * C.P. (In case of gain)
                                         100
              &n loss)
                                         100

For Example :

If an article is sold at gain of 27%, then by using first formula , you can find that S.P. is 127% of C.P.
Similarly, If an article is sold at loss of 18%, then by using second formula , you can find that S.P. is 82% of C.P.

6) If a person sells two commodities at same prices. On one he gains x% and loses x% on another, then as a whole he will be in loss and the loss percentage will be equal to:
       (Common gain or loss percentage)^2  = x^2
                           100                                 10

Note: Here is an example to find gain in case of dishonesty.
Problem 1: A dishonest dealer professes to sell his goods at cost price but he uses a weigh 960 grams for 1 kg. How too calculate gain percentage?

Solution: Gain percentage =          Error            * 100 = 40  * 100 (Ans in %)
                                         True value - Error              960