Profit and Loss Aptitude Important Formulas, Definitions, & Examples:

Overview:

What is Cost Price (CP):

Cost price is the price of an item, at which an item can be purchased.

What is Selling Price (SP):

Selling price is the price of an item, at which an item is sold.

What is Profit or Gain:

If the cost price (CP) of an item is less than that of selling price (SP) of an item, then the seller always will have Profit or Gain. $$ Profit \ or \ Gain = SP - CP $$

Example (1): A man perchased an item for \(Rs.100\), and sold it for \(Rs.120\), then find the profit or loss of the man?

Solution: Given, \(CP = Rs.100\), and \(SP = Rs.120\)

Here, selling price is greater than the cost price of the item so there is a Gain.$$ Profit \ or \ Gain = SP - CP $$ $$ Profit \ or \ Gain = 120 - 100 $$ $$ = Rs.20 \ (Answer) $$

Example (2): A man sold an item for \(Rs.350\) and gained profit of \(Rs.150\), then find the cost price of the item?

Solution: Given, profit = \(Rs.150\), and \(SP = Rs.350\), then.$$ Profit \ or \ Gain = SP - CP $$ $$ 150 = 350 - CP $$ $$ CP = Rs.200 \ (Answer) $$

What is Loss:

If the Selling Price (SP) of an item is less than that of Cost Price (CP) of the item, then the seller will have Loss. $$ Loss = CP - SP $$

Example (1): A Girl perchased an item for \(Rs.200\), and sold it for \(Rs.150\), then find the profit or loss of the Girl?

Solution: Given, \(CP = Rs.200\), and \(SP = Rs.150\)

Here, selling price is less than the cost price of the item so there is a loss.$$ Loss = CP - SP $$ $$ Loss = 200 - 150 $$ $$ = Rs.50 \ (Answer) $$

Example (2): A women perchased an item for \(Rs.500\) and sold with the loss of \(Rs.150\), then find the selling price of the item?

Solution: Given, \(CP = Rs.500\), and loss \(= Rs.150\), then $$ Loss = CP - SP $$ $$ 150 = 500 - SP $$ $$ SP = Rs.350 \ (Answer) $$

What is Printed Price:

This is the price printed or marked on the item. It is also known as MRP (Maximum Retail Price).

Note: In the case of discount, MRP is always treated as 100%.