Profit & Loss

Profit & Loss
The economy of entire world is depend upon profit and loss.
The Commonly used terms in profit loss are:- 
((1) Cost Price
             The price at which an article is purchased is called cost price.It is denoted as C.P..
((2) Selling Price
            The price at which an article is sold is called selling price.It is denoted as S.P..
(3) Profit or Gain
            If the selling price  of an article is greater than the cost price of an article ,then difference of
            selling price  and cost price is called profit or gain.
            i.e. Profit or Gain = S.P.-C.P.
(3) Loss  
            If the selling price  of an article is less than the cost price of an article ,then difference of
            cost price  and selling price   is called loss .
            i.e. Loss = C.P.-S.P.
(4) Discount
           It is an offer made by seller to buyer for reduction in price to be paid.
Point to be remember

(1).    One can generate a profit only if Selling Price> Cost Price.
(2).    One can generates a loss when Selling Price < Cost Price.

(3).     Profit = Selling Price – Cost Price

           

          



(4).    Loss = Cost Price – Selling Price

        












Example 1 :-A person buys a pen from a wholesaler at Rs. 50 for 100 pens. 
                      He sells those pens at Rs.10  for 15 pens. Find his profit or loss percent.

Explanation :- CP for each pen = 50 /100 = Rs. 0.50
                          SP for each pen = 10 / 15 = Rs. 2 / 3
                          Profit = SP – CP = Rs. (2 / 3) – 0.50 = Rs. 1 / 6
                          Therefore, profit percent = [ (1/6) / (0.50) ] x 100 = 33.33%

                          Hence  profit percent =  33.33%

Example 2 :-A vendor bought bananas at a dozen for 2 rupees.

                       How many banana for a rupee must he sell to gain 20%?

Explanation :- Cost price of 12 bananas =Rs.2

                          Cost price of 1 bananas =Rs.2/12=1/6

                          gain =20%$=20\mathrm{\%}$

$\mathrm{ \; \; \; \; \; \; \; \; \; \; \; \; \; Selling\; price\; for\; 1\; banana\; =(1/6)*(120/100)=Rs.\; 0.2}$

$\mathrm{ \; \; \; \; \; \; \; \; \; \; \; \; \; }$Selling price for 5 banana =Rs. 0.2*5=Rs. 1

                         Hence 5 bananas he should sell for Rs. 1 to  gain of 20%
Example 3 :-A man sells a watch at 20% gain for Rs.3600.Find the cost price f watch.
Explanation :- S.P.=3600, Profit %= 20%

                                          Hence  CP = 3000

Example 4 :- The cost price price of  6 mobiles is the selling price of 4 mobiles.
                        Find the gain %.

Explanation :- S.P. of 4 mobiles =  C.P. of 6 mobiles
                          Let CP of one mobile =Rs. x
                           CP of 6 mobiles =Rs. 6x
                           SP of one mobile =Rs. 6x/4=3x/2 = 1.5x
                          Profit % = {(SP-CP)/CP}*100
                                          = {(1.5x-x)/x}*100
                                          = 0.5*100 = 50%                            $\mathrm{}$ 

                         Hence  Profit % = 50% 
Example 5 :- A man sells a car to his friend at 10% loss .I the friend sells it for
                      Rs. 54000 and gain  20% .Find the original cost price of car.

Explanation :- For friend SP = Rs.54000, and gain 20%
                          For friend CP = 100*54000/100
                                                = 45000                          
                          For man SP = 45000
                          
                          For man CP =(100*45000)/90 = 50000
                          Hence  original cost price of car = Rs. 50000