LEARN MATH STEP BY STEP THROUGH VERY EASY PROCESS

PROFIT AND LOSS

**PROFIT & LOSS **

**In this session, we learn some very important part of
Profit & Loss**

**The price at which a buyer purchase an article from a seller
is called the cost price (CP) of the article for the buyer.**

**The price at which a seller sales an article to a buyer is
the sale price or the selling price (SP) of the article for the seller.**

**If the sale price is more than the cost price for the seller
then the seller makes a profit**

** Profit**

**Profit = SP – CP, Profit % = ------------- X 100**

** CP**

**If the cost price is more than the sale price for the seller
than the seller incurs a loss**

** Profit**

**Loss = CP – SP, Profit % = ---------------- X 100**

** CP**

** Total Profit**

**Profit per cent =
-------------------- X 100**

** Cost Price **

** Total Loss**

**Loss per cent =
------------------ X 100**

** Cost Price **

**If the selling price and profit or loss percent are given
then assume the cost price to be Rs. 100 and we have to find the corresponding
selling price. then we have to use the unitary method to find the actual cost price.**

**Marked price –**

**The marked price of an article is the price printed on the package
or on the price tag attached to the article. Generally, this is the price at
which the dealer sells the article to the buyer.**

**Discount-**

**When any shopkeeper or any dealer sells an article for a
price that is lower than the marked price, the difference between the marked
price and the selling price is called Discount.**

**Discount = marked price – selling price,**

**Selling price = marked price – discount.**

**Discounts may be offered as a sum of money or a percentage of
the marked price.**

**For, example a company may offer a discount of $20 on the
marked price of shirt ,**

**Which means that the sale price = marked price - $20.**

**On the other hand, another company may offer a discount of 25
% on the marked price of a table fan. In this case, selling price = marked price
– 25 % of the marked price **

**In general, Discount = Discount percentage as fraction X
marked price **

**And, Discount % = (
discount ÷ marked price ) X 100**

**Overhead charges –**

**In addition to what he spends on buying
goods, a dealer may have to spend on transport, rent, repair, taxes,
salaries, etc. these are taken into account while calculating the cost price of
an article. These additional expenses are called overhead charges or overhead
expense. The overhead expenses of the manufacturer are also taken into account
while calculating the cost price **

**Example –**

**1) If the marked price is $40 and the selling price is $25.
find the discount and the discount percent**

**Ans.) As per the
given condition and given -**

**
Discount = marked price – selling price**

** = 40 – 25 = $ 15**

**Discount % = (
discount ÷ marked price ) X 100**

** 15**

**
= ---------- X
100 = 37.5 % (Ans.)**

** 40**

**2) The marked price
of a refrigerator is $ 800. It is sold
at a discount of 8%, find its selling price.**

**Ans.) As per the
given condition there is a discount they offered by 8%**

** 8**

**So, $ 800 X --------- = $ 64**

** 100**

** So, selling price
would be = 800 – 64 = $ 736**

** The Selling price
is $ 736 (Ans.)**

**3) A carpenter made a
table set and decided to sell by $ 1000, but due to the bad situation he decided to
sell out the same by the 20 % discount, now find out the selling price**

**Ans.) The price of
the Table Set is $ 1000 **

**Now, if there are a discount by 20 %, then -**

** 20**

** $ 1000
X ------------ = $
200 **

** 100**

**As per the formula, Sell Price = Marked Price – Discounted
Price **

** =
$ 1000 - $ 200 = $ 800 (Ans.)**