Profit and Loss

I
person who sells is known as a seller whereas the person wio
ds Duyer or purchaser. The o
nown
price
ce (SP) whereas the price at whichwhich a seller sells is known as nso
at ollinma
(CP). The proft (gain) or loss made a customer buys is known as COST rte
price (CP) and bv a seller is the difference between nis
co
If the
selling price (SP)
selling price is more than CP, then a
profit is made.
Profit Selling Price Cost Price or
=

Profit SP- CP
-

=
If his SP is less
than CP, then a loss has
Loss =
Cost Price
happened.
-Selling or Loss
CP - SP Price =

Profit Loss generally

or
not expressed otherwise.expressed
as
percentage of the cost price if
CHECKPOINT
Observe that loss is nothing but a
Profit(or Loss) % = Profit (or Loss)100 negative profit. If profit is -R10 this
means a loss of F10.
Cost price

Example 1: Calculate profit or loss and express your answer in per cent.
(i) CP =
T200, SP =275 i) CP =R1250, SP =
R1000 (ii) CP =7275, SP =
R325
Solution: (i) Here SP is more than CP, hence a profit is made.
Profit=SP -

CP = 275 200 =R75

Profit
Profit %= Cost =x100 ==37.5 (Remember profit %does not
price 200
have unit)

Therefore, profit =37.5%

(ii) Here SP is less than CP, hence a loss.
Loss = CP - SP = 1250 - 1000 = F250

250
Loss
25
X1001250 X100= 125 X100=x 100= 20
LossoCost price 1250

Therefore, loss = 20%.

 (iii) Here SP is more than CP, hence a
profit.
Profit =
SP -

CP =325-275 = 750
Profit % = Profit x 100 =
50
x100 = x100=
200
= 18.18
Cost price 275
Hence profit is 18.18%.

Example 2: The cost

price of an article is T250. If it is sold for 280, what is the profit per cent
Solution: Here costprice (CP) is 250.
Actual profit in selling the article for 280
280-250 =R30
Hence profit percent Profit(or Loss)100= 30
Cost price 250
12. x100=
The shopkeeper made 12% profit in selling this article.

Example 3: A trader sells at th of his cost price. What is his profit per cent?

Solution: Consider his CP =R100, then SP =of CP =XI00I

Hence his profit = 120 -100 = T20

Profit per cent = O x 100 % = 20%

100

TO FIND SELLING PRICE GIVEN THE COST PRICE AND PROFIT OR LOSS PER CENT
When profit per cent is given we can calculate actual profit. Once actual profit is known, we can find the
selling price.
Actual profit = (profit or loss) % of Cost Price

Selling Price (SP)=Cost Price+actual profit

Selling Price (SP) = Cost Price-actual loss

Example 4: Calculate the selling price for the following.

() Cost price = {20 and profit is 10% (ii) CP = 250 and Loss = 10%

(iii) CP=R150 and profit isth of CP

10
Solution: i) Actual profit = 10% of T20 = x20 =72
100
Hence SP = CP + profit = 20 +2=722

10
(ii) Actual loss = loss % of CP = 10% of 250 = x250=25
100
SP CP- loss = 250-25 T225

(ii) Actual profit=th of CP =x150=R37.50

4
Hence, SP = 150 +37.50 = T187.50
 What is the SP?
15%.
of
profit
Crample 5: The cost price of a shirt is Tó00 and the seller
makes a

Solution: Actual protit in selling the shirt =

15% of 600 =x60

R690
600 + 90
=

deling price = CP + profit =

these apples for R5 a

He sells
for 120.
Example o: A fruit seller buys 30 apples from an apple supplier
piece. What is his profit or loss in this transaction? Calculate his prone
Solution: Here his cost price is 7120.
He sold cach apple for 5. His selling price = 30 x 5 (as he sold 30 appie
= FI50

He made a profit in this transaction, as SP is more than his CP.

Actual profit = SP - CP = 150- 120 = T30

LOSs)100
Profit (or Loss)% =roJi(or
Cost price
25
=
100=x100
120
= 4
So. the fruit seller made 25% profit.
nt?
Example 7: A trader increases the SP of his article in the ratio 5: 4. What is his pronit pei c

Solution: Let the CP be T100.

Then SP = 100x = T125
4
Actual profit = 125 - 100 = T25.

As the CP considered was 100, hence his profit is 25%.

Exercise 10.1

1. Calculate the profit or loss per cent in the 4. A trader sells at 12% gain. His purchase price of
an article was480. What is his selling price?
following.
) Cost Price = 25 and Selling Price = R30 5. The manufacturing cost of a bottle of 100 me

ii) CP=R120 and SP =T140 lotion is 50. The company sells to retailers at
5% profit. And the retailer sells at 20% gain.
(ii) CP=T250 and SP =T225
(iv) CP=71050 and SP =7900 (i) Calculate the profit made by the company
in selling a 100 me lotion?
2. Calculate actual gain or loss amount. (ii) How much does the retailer pay for a botle?
i) CP=R240, profit =12% (ii) What is the selling price of a bottle of
(ii) CP=340 and loss = 17% lotion to the customer?
(ii) CP=F2040 and Gain = 17% (iv) If the retailer sells 1000 bottles per day,
(iv) CP=R3050 and loss = 61% what is his profit per day?
(v) If a customer buys directly from the
3. A shopkeeper buys his stock for 2400 and company, what is his savings?
his transport expense being R200. If he wants
6. A shopkeeper sells at th of his cost price.
to make a profit of 13%, what will be his
5
selling price of the stock? What is his profit or loss per cent?
 7. A trader buys 100 oranges for 350 and sells for the
(i) How much does the trader pay
at 40 a dozen. What is his actual 10 kg of the mixture?
profit or
loss? Calculate his profit or loss per cent.
(ii) Calculate the money he gets by selling
8. A Tea trader his entire stock of 10 kg.
buys Darjecling tea at 300 a kg
and Nilgiri Tea at 160 a kg. He mixes 4 kg (iii) What is gain or loss of the trader in this
of Darjeeling Tea with 6 kg of
Nilgiri Tea. trade?
He sells the mixture at 270 a kg. loss per cent.
(iv) Calculate his profit or

TO FIND COST PRICE GIVEN THE SELLING PRICE AND PROFIT OR LOSS PER CENT
As we know that actual gain or loss is calculated only on cost price, hence we need to solve tnese

problems using unitary technique.

What
Example 8: A shirt was sold for750 and the shopkeeper made 25% profit in this transaction.
was the CP of the shirt for the shopkeeper?
of
Solution: Let us that the shirt was purchased by the
assume shopkeeper for 100. As he made a proht
25% hence his SP would be 100+25 125.
Now we frame the statement for unitary method:
SPisR125 when CP was100.
100
SPisI when CP was 125
SP is 750 when CP was 100, 750 = 600. Hence the CP of the shirt to the shopkeeper was R600.
125
Alternative method
Selling Price ={750; Profit% = 25

Let us assume that the CP is x. Then we have SP = CP + Profit. CHECKPOINT

The unknown quantity is taken
That is, 750=x+ 25x125x as x and then the value of the
100 100 variable is found.
Cross multiplying, we have 125x= 750 x 100
100
x=750750x=600.
125
That is CP={600.

Example 9: A shopkeeper sells rice at R46 a kg. He keeps 15% as his profit. At what rate did he buy?
Solution: The shopkeeper keeps 15% profit. Hence his selling price is 100+ 15 = 115% of his CP.

So we have 115% of his cost price = R46

1% of his cost
price115 5
100 % of his cost price=x100 40

His CP was 40 a kg.

 Alternative method
Applying algebraic technique:
Let the CP
be x.
As his
profit was 15%, this gives 1
15%of x =
46

I15 = 465x= 46x1O0- 40

100
Hence. his CP 115
740 per kg.
=

Example 10: A
dealer sells his
for the goods at total sale on a day is R2100, what is his outlay
goods he
sold? 5% profit. IfIT his
s
e
Solufion: Let his
outlay be 100, then his
When his selling price at >0
P
seiling price is 105, the
When his
outlay is R100.
selling price is 1, the outlay will be 100 20
105 21
When his
selling price is 2100, the outlay will be
Hence his
x2100= 200
outlay for the
goods he sold was 2000.

Exercise 10.2
1. Calculate the SP in each of the following cases.
(i) CP =79000;
Profit=71250
(ii) CP R6250, Profit 10%
=

(iii) CP=R6800; Loss 15% =

(iv) CP =R10800; Loss R1600

=
2. A microwave oven is sold
for18900, thereby making 7. A furniture
a profit of 20%. shopkeeper
buys a dining table for
What was the cost price? R23000, gives it a fresh
3. The cost of a mathematics polish and then sells it
dictionary is 360.
If it is sold at a profit of 20%, what is the for 34000. What is his
selling price? percentage profit?
4. A pair of jeans is sold for 899. 8. If a computer game was
If it was sold at loss of 149, what soldby a shopkeeper at a profit of 15% for
was the cost price? T600, at what rate did he buy?
5. A car, which failed its safety test, 9. Afzal buys a
laptop for R48,000, but later
was sold by its manufacturer at a loss of 35%. sells it for R40,000. Calculate his loss%.
Ifits cost price was500000, find its selling 10. Aanya's bicycle was sold to her by the
price shopkeeper for 2500. If the shopkeeper
6. A mobile shop dealer sells his goods at 12% made a profit of 25% on this, at what price
did theshopkeeper buy? (Hint: Think
profit. If his total sales on a particular day is
56,000, what was his outlay? carefully whose CP we are talking about!)
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