Quantitative Aptitude Profit and Loss Study Material
A consumer goes to the market and buys certain goods. The buyer is called a customer and the shopkeeper who sells the goods to him is called a retailer. The retailer in turn purchases goods in bulk from a wholesaler who keeps a largo stock of goods. In the retailer-wholesaler deal, the retailer becomes the customer.
Cost Price (C.P.): The price at which a person buys an article is called the Cost Price (C.P.) of the article.
Selling Price (S.P.): The price at which an article is sold “is called the Selling Price (SP) of the article. Whenever there is a transaction between the two parties i.e.the buyer and the seller, the price at which the article is sold by the seller is same as the price at which it is purchased by the buyer. Normally, the Cost iPrice and the Selling Price in a problem are commonly used in a slightly modified sense. This is clarified by the following illustration.
A sells an article to B at price Rs.x, B in turn sells it to C at price Rs. y. Here, Rs. x is the Selling Price for A as well as the Cost Price for B. But the Selling Price for B is Rs. y which is also the, Cost Price for C.
Profit or Gain : Whenever a person sells an article at price greater than the Cost Price he is said to have made a profit or gain.
Profit or Gain = SP-CP.
• In the above example B’s profit= Rs. y - Rs. x
• In the above example B’s profit= Rs. y - Rs. x
Loss: When S.P. is less than the C.P., one makes a loss. Loss = C.P.-S.P.
In the above example B's loss= Rs. x - Rs. y.
In the above example B's loss= Rs. x - Rs. y.
Note: S.P. and C.P. must be for the same article and for the same quantity and also must be referred to the same person while calculating profit or loss. . .
For example, we can’t take the difference of the Price of table and chair; or difference of Cost Price of 10 kg's of Sugar and Selling Price of 2 kgs of Sugar for calculating profit or loss. Further, if we are calculating B's profit or loss, then B's C.P. and S.P. should be used and not A's or C’s.
Note: Profit or Loss are always reckoned on Cost Price Gain per cent or % gain is gain on the reference value & Rs. 100.
Loss per cent or % loss is loss on the reference value & Rs. 100.
Some important formula
Gain = S.P.-CP. .
Loss = C.P.-S.P.
Loss = C.P.-S.P.
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