Aptitude - Profit and Loss

Concept

Cost Price (C.P.) : The price, at which an article is purchased, is called its cost price.

Selling Price (S.P.) : The price, at which an article is sold, is called its selling price.

Profit (Gain) : If S.P. is greater than C.P., the seller is said to have a profit or gain.

Loss : If S.P. is less than C.P., the seller is said to have incurred a loss.

Loss or gain is always reckoned on C.P.

If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.

If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.

Important Formulae

Gain = (S.P.) − (C.P.)

Loss = (C.P.) − (S.P.)

Gain % = Gain x 100C.P.

Loss % = Loss x 100C.P.

S.P. = (100 + Gain %)100 x C.P.

S.P. = (100 − Loss %)100 x C.P.

C.P. = 100(100 + Gain %) x S.P.

C.P. = 100(100 − Loss %) x S.P.

If a trader professes to sell his goods at cost price, but uses false weights, then
Gain % = Error(True Value) − (Error) x 100 %

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 = x10 ²