Class note on Profit and Loss

CLASS NOTES
CLASS : 8
SUBJECT : MATHEMATICS
CHAPTER :PROFIT AND LOSS


Contents

PROFIT AND LOSS

Basic Concepts
• Cost Price (C.P.): The price at which an article is purchased.
• Selling Price (S.P.): The price at which an article is sold.
• Profit: If S.P. > C.P., the seller earns a profit.

Profit = S.P. − C.P.

• Loss: If S.P. < C.P., the seller incurs a loss.

Loss = C.P. − S.P.

• Profit %
Profit
Profit % = × 100
C.P.
• Loss %
Loss
Loss % = × 100
C.P.

, Selling Price with Profit or Loss
• Selling Price when there is a profit of p%:
p  p 
S.P. = C.P. + × C.P. = 1 + C.P.
100 100

• Selling Price when there is a loss of l%:
!
l l
S.P. = C.P. − × C.P. = 1 − C.P.
100 100

Inclusion of Overheads
If extra expenses such as transportation, labour, or commission are incurred, they are added
to the cost price to get the total cost price.

Total C.P. = C.P. + Overheads

Examples
Example 1: Profit Calculation
A shopkeeper buys a jacket for |800 and sells it for |950. Find the profit and profit percentage.
Solution:
Profit = S.P. − C.P. = 950 − 800 = 150
150
Profit % = × 100 = 18.75%
800
Example 2: Loss Calculation
A bicycle is bought for |12,000 and sold for |11,400. Find the loss and loss percentage.
Solution:
Loss = 12, 000 − 11, 400 = 600
600
Loss % = × 100 = 5%
12, 000
Example 3: Selling Price with Profit
A camera is bought for|5,000. If it is sold at a profit of 12%, find its selling price.
Solution:
12
 
S.P. = C.P. × 1 + = 5000 × 1.12 = 5600
100
Example 4: Selling Price with Loss
A merchant buys a table for |3,200. If he wants to sell it at a loss of 8%, find the selling price.