how to solve profit and loss
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Answer:
Profit and Loss problems are directly relevant for not only entrance exams (like GMAT, GRE, CAT), but also for the MBA syllabus like Accounting, Financial Statements and more. In this article we cover the basic definitions, formulas, solved examples and wrap it up with some practice questions.
Profit and Loss | Definitions, Formulas
Basic Definitions and Formulas
Cost price (C.P.): This is the price at which an article is purchased.
Selling price (S.P.): This is the price at which an article is sold.
Profit or Gain: If the selling price is more than the cost price, the difference between them is the profit incurred.
Formula: Profit or Gain = S.P. – C.P.
Loss: If the selling price is less than the cost price, the difference between them is the loss incurred.
Formula: Loss = Cost price (C.P.) – Selling Price (S.P.)
Profit or Loss is always calculated on the cost price.
Marked price: This is the price marked as the selling price on an article, also known as the listed price.
Discount or Rebate: This is the reduction in price offered on the marked or listed price.
Below is the list of some basic formulas used in solving questions on profit and loss:
Gain % = (Gain / CP) * 100
Loss % = (Loss / CP) * 100
SP = [(100 + Gain%) / 100] * CP
SP = [(100 – Loss %) / 100]*CP
The above two formulas can be stated as,
If an article is sold at a gain of 10%, then SP = 110% of CP.
If an article is sold at a loss of 10%, then SP = 90% of CP.
CP = [100 / (100 + Gain%)] * SP
CP = [100 / (100 – Loss%)] * SP
Answer:
Formula: Loss = Cost price (C.P.) – Selling Price (S.P.) Profit or Loss is always calculated on the cost price.
Formula: Loss = Cost price (C.P.) – Selling Price (S.P.) Profit or Loss is always calculated on the cost price....
Formula: Loss = Cost price (C.P.) – Selling Price (S.P.) Profit or Loss is always calculated on the cost price....Below is the list of some basic formulas used in solving questions on profit and loss:
Gain % = (Gain / CP) * 100
.
.Loss % = (Loss / CP) * 100
.