Profit and loss | USGD EDUCATIONS

 In this article, we will provide you all the concepts related to profit and loss problems .

What you will get in this article:

• Important terms.
• What is Cost price?
• What is Selling price?
• What is Profit?
• What is Loss?
• Numerical based on profit and loss.
• What is profit percentage?
• How to calculate profit percentage?
• Problem based on profit percentage calculations.
• What is Loss percentage?
• How to calculate loss percentage?
• Problem based on loss percentage calculations.
• Explanation video in Hindi.

Important terms:

What is cost price?

Cost price (C.P.) : it is the price at which the product is bought . It is represented by C.P.

What is selling price?

Selling price (S.P.): it is the price at which the product is sold. It is represented by S.P.

What is profit?

Profit: if we buy a product and sell it at higher price then we get some profit.

Means for getting profit selling price will be higher than cost price.

S.P. > C.P.

Also, we can calculate the profit by using the relation:

Profit= Selling price - cost price

i.e.

     Profit = (S.P.) - (C.P.)

What is Loss?

Loss : if we buy a product and sell it at lower price then we get some loss.

Means for getting profit cost price will be higher than selling price.

C.P. > S.P.

Also, we can calculate the loss by using the relation:

Loss = cost price - Selling price 

i.e.

Loss =(C.P.) - (S.P.) 

Example: Ram bought a book of rupees 200 and sold it at rupees 250. Calculate his profit or loss.

Solution:

Cost price = 200

Selling price = 250

Since selling price is more than cost price.

So, there will be some profit.

Profit= Selling price - cost price

Profit = (S.P.) - (C.P.)

= 250 - 200

= 50

Therefore, he will get a profit of 50 rupees.

Example: Ram bought a book of rupees 250 and sold it at rupees 200. Calculate his profit or loss.

Solution:

Cost price = 250

Selling price = 200

Since selling price is less than cost price.

So, there will be some loss.

Loss = cost price - Selling price 

Loss =(C.P.) - (S.P.) 

= 250 - 200

= 50

Therefore, he will get a loss of 50 rupees.

What is profit percentage?

Profit percentage : The percentage of profit on selling price of any product over the cost price of that product.

Since, percentage of anything is found using the formula 

Percentage (%) = (thing / total things) * 100

How to calculate profit percentage?

So, profit percentage = ( profit / cost price ) * 100

Here, cost price is used because the total amount on which we are calculating profit is the cost price of the product.

Proceeding the above formula :

Profit percentage = { ( SP - CP ) / CP } * 100

% profit = { (SP / CP) - 1 } * 100

% profit = (SP / CP)*100 - 100 

100 + % profit = (SP / CP)*100 

(SP / CP) * 100 = ( 100 + % profit ) 

SP = ( 100 + % profit ) * CP / 100

What is Loss percentage?

Loss percentage : The percentage of loss on selling price of any product over the cost price of that product.

Since, percentage of anything is found using the formula 

Percentage (%) = (thing / total things) * 100

How to calculate loss percentage?

So, loss percentage = ( loss / cost price ) * 100

Here, cost price is used because the total amount on which we are calculating loss is the cost price of the product.

Proceeding the above formula :

Loss percentage = { ( CP - SP ) / CP } * 100

% loss = { 1 - (SP / CP) } * 100

% loss = 100 - (SP / CP)*100 

100 - % loss = (SP / CP)*100 

(SP / CP)*100 = (100 - % loss ) 

SP = (100 - % loss ) * CP / 100

Example: