# PROFIT AND LOSS math capsule

Did you ever wondered how a shopkeeper is going to maintain his orders?
or how a lady is going to organise her monthly budget?
they all here and there use concepts of profit and loss , either knowingly or unknowingly,
So lets dive into these,

## COST PRICE :

The price, at which an article is bought is called its cost price. All the overhead in the transaction like fright, damage , etc., are added to the cost price. Profit and loss percentage is always calculated as the percentage of CP unless otherwise specified.

## SELLING PRICE :

The price at which an article is sold is called its selling price. There is a gain in the transaction, if SP>CP, where gain = SP-CP .

There is a loss in the transaction , if CP>SP, where, loss= CP-SP

## LIST PRICE / MARKED PRICE :

The price of article excluding tax is known as marked price. Sometimes the shopkeeper increases or decreases the cost price ,then this price is the list price of the articles.

### PROFIT = SELLING PRICE - COST PRICE LOSS = COST PRICE - SELLING PRICE PROFIT AND LOSS IS ALWAYS CALCULATED ON COST PRICEPROFIT % = (PROFIT / CP) * 100%LOSS % = (LOSS / CP) * 100%Loving the article?Thanks...IMPORTANT RULES

• If there is a profit of r% , then SP = (100 + r)*CP / 100  and  CP = (100*SP) / (100 + r)
• If there is a loss of r% , then   SP = (100 - r)*CP / 100   and  CP = (100*SP) / (100 - r)
• When there are two successive profits of x% and y% then the resultant profit percent is given by  (x + y + (x*y / 100) ) %
• When there are two successive losses of x% and y% then the net loss per cent is given by         (-x -y + (x*y / 100) ) %
• Where there is a profit of x% and loss of y% then the resultant profit or loss per cent is given by    (x - y - (x*y / 100) )%
• If the cost of both the item be S. One is sold at a loss of r % and the other at a gain of R% , then   Cost price of item sold at loss = (S* (100 + R)) / ((100 - r)+(100 + R))                                               Cost price of item sold at gain = (S* (100 - r)) / ((100 - r) + (100 + R))
• If 'a' part is sold at l% profit, 'b' part is sold at m% profit and 'c' part is sold at n% profit. If rs 'R' is earned as overall profit , then the value of total consignment   = (R * 100) / (al + bm + cn)
• If a certain number of articles are purchased at 'r' a rupee and the same number at 'R' a rupee . He mixes them together and sells them at 'M' a rupee. Then, gain per cent or loss per cent               =[(2Rr / M(r+R)) -1]* 100 %                                                                                                                   According as the sign +ve or -ve ,                                                                                                   If M = (r+R)/2 there is always loss.                                                                                                       If r=R=M there is neither gain nor loss
• If cost price of 'n' articles is equal to the selling price of 'm' articles, then                                     Profit Percentage = ((n - m) / m) * 100 % (n>m)                                                                                  and Loss Percentage =((m - n) /m )* 100% (m>n)

#### SELLING PRICE = MARKED PRICE - DISCOUNT

• If discount allowed is r%, then  selling price = (100 - r) * marked price / 100
• If a shopkeeper marks his items at x% above the cost price and allows customers a discount of y% for cash, then there is (x - y - (xy / 100))% profit or loss according to positive or negative sign , respectively.
• Single discount equivalent to three successive discounts r1%, r2% and r3%                                        = [1 - (1 - r1/100)*(1 - r2/100)*(1 - r3/100)] * 100%
• If marked price price of an item is rs x and the successive discount rates are r1% , r2% , r3% and so on , then selling price of item                                                                                                     SP = x * (1 - r1/100 ) * (1 - r2/100 ) * (1 - r3/100)

kindly attempt the exercises too :)

 PROFIT AND LOSS EXERCISE 1

 PROFIT AND LOSS EXERCISE 2

 PROFIT AND LOSS EXERCISE 3

 HINTS AND SOLUTIONS 1 PROFIT AND LOSS

 HINTS AND SOLUTIONS 2 PROFIT AND LOSS

 HINTS AND SOLUTIONS 3 PROFIT AND LOSS

 HINTS AND SOLUTIONS 4 PROFIT AND LOSS
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PROFIT AND LOSS math capsule

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