Selling price = cost (CP) + desired profit margin (profit). In the formula, turnover is the selling price, cost represents the cost of goods sold (the cost you incur to produce or buy goods for sale) and the desired profit margin is what you hope to earn. When calculating the percentage of profit and the percentage of loss, we learn the basic concepts of profit and loss. We will remember the facts and formulas when calculating the percentage of profit and the percentage of loss. Now we will apply the concept of percentage to find profits/losses in the sale and purchase of goods in our daily lives. 2. Jessica bought a bike for Rs. 1300. It also has to spend Rs.

70 on its repairs. Because of her problems, she had to sell it for 1185. Find their percentage of loss. Profit or loss is calculated when a person sells something to someone else. If he sells it at a higher price than he bought, he makes a profit, otherwise it is a loss. John bought a bike for $339 and sold it to a buyer for $382. Did he make a profit or a loss by selling the bike? What is the level of loss or profit? Profit and loss formulas can be easily derived by understanding the terms “selling price” and “cost price”. The cost price is the price at which an item is purchased, and the selling price is the price at which an item is sold.

If the selling price of a product is higher than its cost price, a profit is made on the transaction. The result is the formula: profit = selling price – cost price. However, if the cost price of a product is higher than its selling price, there is a loss in the transaction. The result is the formula: loss = cost price – selling price. [CP = SP + Loss = x + frac{3x}{5} = frac{8x}{5}]. The cost price of 20 laptops is similar to the retail price of `n` number of laptops. The seller suffered a loss of 40%. Do you know the value of n? I. Profit = (SP) – (CP) II.

Loss = (CP) – (SP) III. Gain% = (Profit / CP × 100) % IV. Loss % = (Loss / CP × 100) % V. To find SP when CP and Gain% or Loss% are specified: ● SP = [(100 + profit%) / 100] × CP ● SP = {(100 – loss%) /100} × CP VI. To find CP when SP and Gain% or Loss% are specified: ● CP = {100 / (100 + profit%)} × SP ● CP = {100 / (100 – loss %)} × SP Profit and loss issues are not limited to undergraduate studies, but are a lifetime benefit and even directly relevant to competitive entrance exams (such as CAT, GMAT, GRE, IBPS, UPSC). Questions based on the percentage of profit and loss formula are also relevant to the MBA program such as financial statements, stock markets, trading, accounting, etc. 5. A seller bought oranges for $20 for $56 and sold them for $35 by the dozen. Find its percentage of profit or loss. Solution: LCM of 20 and 12 = (4 × 5 × 3) = 60. Let the number of oranges purchased be 60. CP of 20 oranges = $56 CP of 1 orange = $ (56 / 20) CP of 60 oranges = $ [(56 / 20) × 60] = $ 168 SP of 12 oranges = $ 35 SP of 1 orange = $ [(35 / 12) × 60] = $ 175 Daher CP = $ 168 and SP = $ 175.

Since (SP) > (CP), the provider benefits. Profit = $ (175 – 168) = $ 7. Profit % = [(Profit / CP) × 100] % = [(7 / 168) × 100] % = 25 / 6% = 4 ¹/₆ % Calculating the percentage of loss or profit is a crucial concept. Many financial, statistical and real examples are associated with the concept of near or far percentage loss. To evaluate the percentage of profit or loss of an investment, buyers must first determine the purchase price and for this we use the formula of loss and profit. The formula also tells you how to represent the loss as a percentage. In this chapter, we will cover the important descriptions, formulas, solved examples and finish with some quiz questions. 6. If the cost price of 10 pens is equal to the selling price of 8 pens, you will find the profit or loss as a percentage. Solution: Let the cost price of each card $x then CP of 8 pens = $8x. SP of 8 pens = CP of 10 pens = $10x. Thus, CP = $8x and SP = $10x.

Since (SP) > (CP), there is a profit. Profit = $ (10x – 8x) = $ 2x. Profit % = [(Profit / CP) × 100] % = [(2x / 8x) × 100] % = 25% The two formulas mentioned above can be described as follows: [text{Loss of } 40% = [frac{n – 10}{n}] times 100 = 40]. If an item is sold with a profit of 25%, then SP = 125% of CP. Profit and loss terms are the terms used to determine whether a transaction is profitable or not. Before moving on to the profit and loss formula, we need to understand the terms “selling price” and “cost price”. The price at which a product is purchased is called the cost price. The price at which a product is sold is called the selling price. Now, if the selling price is higher than the cost price, then the difference between them is called profit. If the selling price is lower than the cost price, the difference between them is called a loss. Profit and loss formulas are mainly used in commercial and financial transactions, where the company must calculate the profit or loss that has occurred in its business.

On a smaller scale, these formulas can be used to calculate the profit or loss of each basic transaction in which products are bought and sold. For example, if a store owner buys a bunch of books for $400 and sells them for $500, he can calculate his profit using the formula: profit = sale price – cost price. Replace the values in the formula: $500 – $400 = $100. This shows that he makes a profit of $100 on the transaction. 4. Ron was supposed to have an Almirah for $6250 and spent $375 on his repairs. Then he sold it for $6890. Find its percentage of profit or loss. This question can be solved with the help of profit and loss formulas. Suppose the CP of the pens is one. Then 6-pin CP = 6a. 4-pin CP = 4a.

Given: SP of 4 pens = 6a profit and loss formulas are used to calculate the profit or loss incurred by the sale of a particular product. They are mainly used in commercial and financial transactions to represent the amount of profits or losses that a trader has made from a particular business. = (2a/4a)× 100 = 50%. Therefore, the profit percentage is 50% 3. Maddy bought an old scooter for $12,000 and spent $2850 on the overhaul. Then he sold it to his friend Sam for $13860. What percentage did he win or lose? Solution: Scooter cost price = $12000, overhead = $2850. Total cost price = $ (12000 + 2850) = $ 14850. Sale price = $13860. Since (SP) < (CP), Maddy has made a loss. Loss = $ (14850 – 13860) = $ 990. Loss = [(loss / total CP) × 100] % = [(990 / 14850) × 100] % = 6 Similarly, the loss formula can be derived from the selling price and the cost price.

Simply put, if a product is sold at a price lower than the price at which it was purchased, then we have a loss in the transaction. If the cost price of a product is higher than its selling price, there is a loss in the transaction. Theft. Generally, the cost price of an item is the price paid for the purchase of that item. However, when calculating the percentage of profits and losses, we must also add the additional cost of this item. For example, sometimes after buying an item, we have to spend extra money on things like transportation, local taxes, repair, modification, etc. These additional expenses increase the cost price and are called overhead. To calculate the total cost price, we add overhead and additional costs to the purchase price. Profit = 50 – 20 = 30. Therefore, a profit of $30 is made on the transaction. We incur a loss if the selling price of an item is lower than the cost price. So, if (SP) < (CP), then there is a loss.

The formula for calculating the amount of the loss is as follows: if the store owner sells the item for more than paid, SP > CP, then the profit is given as the use of the percentage loss formula, loss% = (loss / CP) × 100. Example: Let`s find the loss that occurs when a product is bought at $60 and sold at $40. In this case, the cost price = 60 USD. Selling price = $40. Loss = Cost price – Selling price 2. Ron bought a table for $1260 and had to sell it for $1197 due to a few scratches on top. Find its percentage of loss. Solution: CP Rs.1260 and SP = $1197. Since (SP) < (CP), Ron has made a loss. Loss = $ (1260 – 1197) = $ 63. Loss % = [(Loss / CP) × 100] % = [(63 / 1260) × 100] % = 5% When calculating the percentage of profit and the percentage of loss, sometimes we have to pay a little more money for things like transportation, repair costs, local taxes after buying an item. For the calculation of the total cost price, we add the overhead costs to the purchase price.

Since the selling price is higher than the cost price, John has a profit on the sale of the bike. Loss and profit can also be calculated as a percentage using the following formulas: thus, the loss suffered by the store owner is 37.5%. Using the formula of the loss percentage equation: Loss % = (loss / cost price) × 100 profit or profit: If the selling price is higher than the cost price and the difference between them is the profit realized. An electronics merchant suffered a loss in a store that represents 3/5 of the selling price. Find out the percentage of loss. Not only is profit and loss an important calculation of the industry, but they also deal with the real-time gain and loss realized in a business transaction. The income statement is a critical summary of business transactions and indicates whether a company has achieved a result during a given accounting framework. In fact, if we deduct total expenses from total income, we can calculate the profit or loss of a business.

Along with the balance sheet, it is one of the crucial financial statements that make up a company`s statutory financial statements. Basically, a profit and loss percentage account displays the following information for a business: If P.O. is $100, S.P. = P.C. – Loss = 100 – 6 = $94 [Loss% = frac{(frac{3x}{5})}{(frac{8x}{5}) times 100 = 37.5%]. Remember: the loss or profit is always calculated according to the cost price. . SP = selling price, the price that the store operator receives when selling the same item Therefore, the answer is option C. as the list price of shoes, that is, before the discount is Rs. .

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