{"id":4250,"date":"2021-11-21T12:36:50","date_gmt":"2021-11-21T12:36:50","guid":{"rendered":"https:\/\/stgwebsite.mindspark.in\/studymaterial\/?page_id=4250"},"modified":"2022-01-03T08:20:21","modified_gmt":"2022-01-03T08:20:21","slug":"profit-loss-formula-explanation-solved-examples","status":"publish","type":"page","link":"https:\/\/stgwebsite.mindspark.in\/studymaterial\/math-concepts\/profit-loss-formula-explanation-solved-examples\/","title":{"rendered":"Profit Loss formula \u2013 Explanation \u2013 Solved examples"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”Section” module_class=”mainsec” _builder_version=”4.10.4″ _module_preset=”default” background_color=”#e0f2fd” z_index=”1″ custom_padding=”5px||5px||true|false” locked=”off” collapsed=”off” global_colors_info=”{}”][et_pb_row column_structure=”3_5,2_5″ custom_padding_last_edited=”on|phone” _builder_version=”4.10.8″ _module_preset=”default” background_color=”#FFFFFF” width=”100%” max_width=”1310px” custom_padding=”|51px|40px|51px|false|true” custom_padding_tablet=”” custom_padding_phone=”|40px|30px|40px|false|true” border_radii=”on|10px|10px|10px|10px” global_colors_info=”{}”][et_pb_column type=”3_5″ admin_label=”Column L” _builder_version=”4.9.10″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Acute Angles
\n” _builder_version=”4.13.1″ _module_preset=”default” header_font=”|700|||||||” header_text_align=”left” header_font_size=”50px” header_line_height=”1.18em” custom_padding=”|0px||4px|false|false” header_font_size_tablet=”” header_font_size_phone=”35px” header_font_size_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n

Profit Loss Formula \u2013 Explanation \u2013 Solved examples<\/h1>\n

[\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.13.1″ _module_preset=”default” text_font_size=”16px” header_2_font=”|600|||||||” header_2_text_color=”#a01414″ header_3_font=”|600|||||||” header_3_text_color=”#686868″ custom_padding=”15px|15px|1px|4px|false|false” global_colors_info=”{}”]<\/p>\n

Profit loss formula<\/b><\/h2>\n

<\/b><\/h3>\n

Cost Price<\/b><\/h3>\n

Cost Price is the total price for purchasing an item. It consists of two parts:<\/span><\/p>\n

    \n
  1. Buying price<\/strong>: <\/span>It is the price used for buying.<\/li>\n
  2. Overhead charges<\/strong>: <\/span>It is the extra amount of money spent on the item for miscellaneous activities like repairing etc. There may or may not be overhead charges for any purchase.<\/li>\n<\/ol>\n

    Cost Price = Buying price + Total overhead charges (if any)<\/span><\/p>\n

    <\/span><\/p>\n

    Selling Price<\/b><\/h3>\n

    It is the price we get after selling.<\/span><\/p>\n

    <\/span><\/p>\n

    Loss<\/b><\/span><\/h3>\n

    When the selling price becomes less than the cost price, loss occurs. It is the difference between the cost price and the selling price.<\/span><\/p>\n

    Loss = Cost Price – Selling Price<\/span><\/p>\n

    Loss( in %)\u00a0 =\\frac{\\text { Loss }}{\\text { Cost price }} \\times 100=\\frac{\\text { Cost price-Selling price }}{\\text { Cost price }} \\times 100<\/span><\/span><\/p>\n

    <\/span><\/p>\n

    Profit<\/strong><\/h3>\n

    When the selling price becomes more than the cost price, profit occurs. It is the difference between the selling price and the cost price.<\/span><\/p>\n

    Profit = Selling Price – Cost Price<\/span><\/p>\n

    Profit ( in %) =\\frac{\\text { Profit }}{\\text { Cost price }} \\times 100=\\frac{\\text { Selling price }-\\text { Cost price }}{\\text { Cost price }} \\times 100<\/span><\/span><\/p>\n

     <\/p>\n

    Marked Price\u00a0<\/b><\/h3>\n

    It is the price marked by the seller on the product meant for selling.<\/span><\/p>\n

     <\/p>\n

    Discount<\/b><\/h3>\n

    Discount is the concession given by the seller to the customer on the marked price. It is the difference between marked price and selling price.<\/span><\/p>\n

    Marked Price = Selling price + Discount<\/span><\/p>\n

    Discount ( in %) =\\frac{\\text { Discount }}{\\text { Marked price }} \\times 100=\\frac{\\text { Marked price }-\\text { Selling price }}{\\text { Marked price} } \\times 100<\/span><\/span><\/p>\n

    <\/span><\/p>\n

    Let us now revise the basic concepts and formulas before solving the questions.<\/span><\/span><\/p>\n

      \n
    1. Cost Price = Buying price + Total overhead charges (if any)<\/span><\/li>\n
    2. Profit = Selling Price – Cost Price<\/span><\/li>\n
    3. Loss = Cost Price – Selling Price<\/span><\/li>\n
    4. Profit ( in %) =\\frac{\\text { Profit }}{\\text { Cost price }} \\times 100=\\frac{\\text { Selling price }-\\text { Cost price }}{\\text { Cost price }} \\times 100<\/span><\/span><\/span><\/span><\/span>
      <\/span><\/li>\n
    5. Loss( in %) =\\frac{\\text { Loss }}{\\text { Cost price }} \\times 100=\\frac{\\text { Cost price }-\\text { Selling price }}{\\text { Cost price }} \\times 100<\/span><\/span>
      <\/span><\/li>\n
    6. Marked Price = Selling price + Discount<\/span>
      <\/span><\/li>\n
    7. Discount ( in %) =\\frac{\\text { Discount }}{\\text { Marked price }} \\times 100=\\frac{\\text { Marked price }-\\text { Selling price }}{\\text { Marked price }} \\times 100<\/span><\/span>
      <\/span><\/li>\n<\/ol>\n

       <\/p>\n

      Solved examples<\/b><\/h2>\n

      <\/b><\/p>\n