Profit and Loss Problem Concepts
Profit and Loss Concepts
Introduction
On the Nithra Jobs site, we have given profit and loss questions and answers with clear explanations. These profit and loss problems will be more helpful for job seekers and also for candidates who are preparing for competitive exams. Profit and loss are two important financial concepts that are used to measure the financial performance of a business. Profit is the excess of revenue over expenses, while loss is the excess of expenses over revenue. These concepts are crucial for businesses to understand as they provide insights into the financial health of the company.
Formulas:
S.P - Selling PriceC.P - Cost Price
1. Gain = (S.P.) - (C.P.)
2. Loss = (C.P.) - (S.P.)
3. Loss or gain is always reckoned on C.P.
4. Gain Percentage (Gain %) =(Gain * 100) / C.P.
5. Loss Percentage (Loss %) = (Loss * 100) / C.P.
6. Selling Price (S.P.) = [(100 + Gain %) / 100] * C.P
7. Selling Price: (S.P.) SP = [(100 - Loss %) / 100] * C.P.
8. Cost Price (C.P.) = [100 / (100 + Gain %)] * S.P.
9. Cost Price (C.P.) = [100 / (100 - Loss %)] * S.P.
10. If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.
11. If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.
12. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:
Loss % = (Common Loss and Gain %) / 10)2
= (x / 10 )2.
13. If a trader professes to sell his goods at cost price, but uses false weights, then Gain % = [Error / (True Value - Error)] * 100%
Solved Problems
1. A woman buys an article for Rs. 27.50 and sells it for Rs 28.60. Find her gain percent.
Answer: 4 %
Explanation:
Cost price = 27.50
Selling Price = 28.60
Gain = 28.60 - 27.50
= Rs. 1.10
Gain % = ( Gain * 100 ) / Cost price
= ( 1.10 * 100 ) / 27.50
= 110 / 27.50
= 4 %
Gain % = 4 %
2. If the cost price is 25% of selling price. Then what is the Gain percent?
Answer: 300%
Explanation:
Let the Selling Price = 100,
then Cost price = 25
Gain = 100 - 25
Gain - 75
Gain % = ( Gain * 100 ) / Cost price
= ( 75 * 100 ) / 25
= 3 * 100
= 300 %
Gain % = 300 %
3. Arun purchased 70kg vegetable at Rs. 420, then sold them at the rate of Rs. 6.50 per kg, find the profit percent.
Answer: 8 (1/3) %
Explanation:
Cost price of 1 Kg vegetables = ( 420 / 70 )
= 42 / 7
= Rs. 6
Selling Price = 6.50
Gain = Selling Price - Cost price
= 6.50 - 6.00
= Rs. 0.50
Gain % = ( Gain * 100 ) / Cost price
= ( 0.50 * 100 ) / 6
= 50 / 6
= 8 (1/3) %
Gain % = 8 1/3 %
4. If the cost price of 12 pencils is equal to the selling price of 8 pencils, find the gain percent.
Answer: 50 %
Explanation: Let the cost price of 1 pencil is Rs. 1
Cost of 8 pencils = Rs. 8
Selling price of 8 pencils = Rs. 12
Gain = 12 - 8
= 4
Gain % = ( Gain * 100 ) / Cost price
= ( 4 * 100 ) / 8
= 400 / 8
= 50 %
Gain % = 50 %
5. Shyam buys an old scooter for Rs. 4600 and spends Rs. 900 on its repairs. If he sells the scooter for Rs. 5800, what is his gain percent?
Answer: 5 ( 5/11 ) %
Explanation:
Cost price = Rs. 4600,
Amount Spends = Rs. 900
Then, total cost price = Rs. 4600 + Rs. 900
= Rs.5500
Selling price = Rs. 5800
Gain = Selling price - Cost price
= Rs. 5800 - Rs.5500
= Rs.300
Gain % = [ 300 * 100 ] / 5500
= 60 / 11
= 5 ( 5/11 ) %
Gain % = 5 ( 5/11 ) %
Conclusion
Understanding profit and loss is essential for any business. It is important to keep track of these financial metrics to ensure that the business is running smoothly and profitably. By analyzing profit and loss, businesses can identify areas for improvement, make informed financial decisions, and ultimately drive long-term success. For the purpose of clear understanding we have provided profit and loss problems along with solution and formulas.
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