Profit and loss problems involve various terms like Cost price, Selling price, Marked price and Discount etc. Basically, it is a difference between selling price and cost price.
Cost price is the price paid to purchase an article or a product or we can say it is a cost incurred in manufacturing an article.
Selling price is the price at which a product is sold.
in other ,
⇒ Selling Price = Cost Price + Profit
![profit percentage formula profit percentage formula](https://1.bp.blogspot.com/-P8rVSjMvcAs/WO8lMGLR5nI/AAAAAAAAGCI/KbSW0OzzLFMW48sXY76yQrxVglaREdDsQCEw/s1600-rw/1.PNG)
![loss percentage loss percentage](https://3.bp.blogspot.com/-6OGl-krLve8/WO8lMDBRg0I/AAAAAAAAGCM/pBHMMJtagYMbHb4LBvGsMynluVy1NnKGwCEw/s1600-rw/2.PNG)
![relationship between selling price and cost price relationship between selling price and cost price](https://1.bp.blogspot.com/-MkcZHGucgds/WO8lMIHa_qI/AAAAAAAAGCE/wbeU79Knw00ut2c0BCWxziHA_8i4YiK0wCEw/s400-rw/3.PNG)
![direct relationship between selling price and cost price direct relationship between selling price and cost price](https://4.bp.blogspot.com/-a72P8XulmXw/WO8lMvuqqwI/AAAAAAAAGCQ/MLzWTLslNJURxYJoE5QZQAqULYNbnmdFwCEw/s400-rw/4.PNG)
For Example: If an article is sold at a gain of 27%, then by using the first formula, you can find that S.P. is 127% of C.P.
Similarly, If an article is sold at loss of 18%, then by using the second formula, you can find that S.P. is 82% of C.P.
![common gain percentage common gain percentage](https://1.bp.blogspot.com/-itryHCuvSGM/WO8lMpl0UcI/AAAAAAAAGCU/3BCjYUg-xdgWIn-jZhBuWDd55P60ij3MACEw/s400-rw/5.PNG)
Note: Here is an example to find gain in case of dishonesty.
Problem 1: A dishonest dealer professes to sell his goods at cost price but he uses a weigh 960 grammes for 1 kg. How to calculate the gain percentage?
Solution:
![error true value error true value](https://2.bp.blogspot.com/-CDG6JIzjKMo/WO8lMgZPlYI/AAAAAAAAGCY/bdAW1DZNtdU4ThDm0NCcBqtszD07dvUwQCEw/s400-rw/6.PNG)
6 Commonly used Profit and loss Formulas :
1) Calculation of Profit:
Profit or gain = Selling price(S.P) - Cost price(C.P)in other ,
⇒ Selling Price = Cost Price + Profit
2) Calculation of Loss
Loss = Cost price - Selling price3) Calculation of Gain percentage(%)
4) Calculation of Loss percentage(%)
5) Finding relationship between selling price and cost price:
For Example: If an article is sold at a gain of 27%, then by using the first formula, you can find that S.P. is 127% of C.P.
Similarly, If an article is sold at loss of 18%, then by using the second formula, you can find that S.P. is 82% of C.P.
6) Finding Combined Profit/Loss on sale of Two products
If a person sells two commodities at same prices. On one he gains x% and loses x% on another, then as a whole he will be in loss and the loss percentage will be equal to:Note: Here is an example to find gain in case of dishonesty.
Problem 1: A dishonest dealer professes to sell his goods at cost price but he uses a weigh 960 grammes for 1 kg. How to calculate the gain percentage?
Solution: