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Profit and Loss Calculations Explained

The document discusses various calculations related to selling price (sp), cost price (cp), gain, and loss percentages in transactions. It includes formulas for determining sp based on gain or loss percentages, as well as scenarios involving false weights and their impact on profit. Additionally, it provides examples of calculating profit and loss from different sales transactions.
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0% found this document useful (0 votes)
44 views7 pages

Profit and Loss Calculations Explained

The document discusses various calculations related to selling price (sp), cost price (cp), gain, and loss percentages in transactions. It includes formulas for determining sp based on gain or loss percentages, as well as scenarios involving false weights and their impact on profit. Additionally, it provides examples of calculating profit and loss from different sales transactions.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd

gain = 6 % , cp = cp , what is the sp?

6 % of cp = 6/100 of cp

sp = cp + 6/100 of cp

= 100cp / 100 + 6/100 of cp

= 106 cp / 100

= (100 + 6 ) % of cp

If cp = 8000 , gain = 6 % , then sp = (100 + gain%) of cp

or, (100 + 6)% of cp

that is, 106 / 100 of cp = 8480

Therefore, selling price is 8480.

---------------------------xxxxx--------------------------------

if sp = (100 + gain)% of cp ,

cp = 100 sp / (100 + gain%)

Similarly,

SP = (100 - loss %)% of cp

= (100 - loss%) cp / 100

And ,

cp = 100 sp / (100 - loss%)

-----------------------------X---------------------------

man sells two items , one at 6 % gain to himself , and other at 6 % loss. How much
did he gain in this transaction? If not, how much he lost?

initial cp for him to buy item is x

first transaction earned him 6 % gain , i.e., 1.06x is the selling price;

second transaction was 6% loss.


so, sp = 94% of 1.06x = 0.9964 of x = 99.64% of x is the selling price.

We know ,

selling price = (100 - Loss% ) of cp / 100

or, 100 - Loss% = 99.64

or, Loss% = 100 - 99.64 = 0.36%

therefore, through the two transactions, he incurred a net loss of 0.36%.

Formula :

Loss % =[ (common loss and gain % )/ 10 ] ^ 2

= (x/ 10 )^2

In this case,

(6/10)^2 = (0.6)^2 = 0.36 .

--------------------X---------------------

if man is claiming to sell at cost price, but is using false weights (to earn more
profit), then

gain% = [[Error/ (True Value - Error)] * 100 ]%

For instance,

if original price of something is 8000, and it is being sold for 8640, and seller
claims it is being seld at cost price, figure out the gain%.

Here,

Error is 640

so , gain% for the seller is

(Error/ True Value - Error ) * 100

or, (640 / 8000 - 640 ) * 100 = (640/ 7360) * 100

that is, 8.69% is the gain of the seller.

------------------ X -----------------

trader tells you he's being honest when he says he's selling something at x%
profit,

but he's lying .

He's still using false weights, charging you more for less.
so how much did he gain?

that's given by:

Gain % = [[(x+y)/ (100 - y)] * 100] %

x is the supposed profit % which he claims,

y is how much less the false weights are compared to the actual weights.

Both are in percentage.

--------------------X----------------------

Now, if someone claims to sell something at a loss of x%, but is using false
weights that are y% less than the actual weights, then,

the gain or loss in this transaction (for the seller) is given by

Gain or Loss % = [y-x / 100 - y ] * 100

if value is +ve , it's a gain. Otherwise, it's a loss.

------------------------------ X ----------------------------------

Note : if he claims to sell it at profit x % ,but is using weights that are y% less
than the original weights, then gain % is given by [y+x / 100 - y ] * 100

If he claims to sell at a loss of x%, but is using false weights that are y % less
than the original weights, then

loss or gain % is given by (y-x/ 100 - y)* 100

----------------------X--------------------

bought at 250000, sold at 348000. profit is sp-cp.

profit % is [(sp- cp)/cp]* 100

------------------------X---------------------

gain is 20 % , cp is 56.25.
sp = 1.2 * 56.25

-------------------------X---------------------

loss is 15 %, cp is 80.40.

sp = 0.85 * 80.40

-------------------------X----------------------

sp is 14500, loss is 20%.

cp = 14500/0.8

------------------------X-----------------------

man charges 23 % more than cp and sold someone a phone at 7011. what was the
original cp?

here , 1.23% * cp = 7011

so, cp = 7011 * 100/123

------------------------ X ----------------------

sp = 0.75 * cp

if sp = 1950, cp = 1950/0.75

if she wanted a 30% profit, then sp would have to be...........

sp = cp * 1.3

or, 1950 * 1.3

------------------------- X -------------------------

sp = 1.2 * cp . if sp is 14400, cp is 14400/1.2 = 12000.

if production cost increases by 15%, that is, cp increases by 15%, the new cp
becomes 1.15 * 12000 = 13800

if he wants to make 15% gain, then the new sp must be

1.15 * 13800 = 15870


------------------------- X -----------------------

sp = cp * 1.1 . if sp is 27.50, cp is 27.50/1.1 = 25.

if sp was instead 25.75, then

profit % = (0.75/25)*100 = 3 %

-------------------------- X ----------------------

cp is 96 % of sp. what's the profit %?

first off, what's the profit?

Easy method :

if sp is 100, cp is 96.

profit is 4. and profit % is 4/96 * 100

------------------------- X ---------------------

manufacturer makes 800 articles. each cost 1.50.

cp of entire 800 = 800 * 1.5 = 1200.

if he sells 600, he wants to make 30 % profit.

sp = 1.3 * 1200

or, sp = 1560.

so, sp of each = 1560/600 = 2.6

But, he sold 620 at this price.

So, he sold 620 at 1612

If we assume the unsold ones to be useless, that means they will not be accounted
for when calculating profit %.

So, for the 620 that he sold,

profit = sp - cp = 1612 - 1200 = 412

profit % = 412 / 1200 * 100 = 34.33%


------------------------ X --------------------

sp of 30 = cp of 25

Easy method :

assume sp of 30 as 600.

that means cp of 25 is also 600.

sp of each 30 is 20 and cp of each 25 is 24.

since cp > sp , there is a loss.

loss % = loss / cp * 100 = 4/24 * 100 = 100/6 = 16.67%

------------------------ X -----------------------

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