Profit and Loss Concept SSC CGL

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PROFIT AND LOSS

CONCEPT
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Profit and Loss Concept SSC CGL Tier-2 Free e-book
Profit and Loss Concept for SSC CGL Tier-2

Profit and Loss concept is an important concept in Mathematics that is used to determine the price of a given
commodity in the market and also to determine if the business is making profit or loss. Each product will have a
certain cost price and selling price. Based on the cost price and selling price the profit or loss on that product can be
calculated.
Suppose for a product a person obtains a selling price which is more than the cost price of that product, then we can
say that the person has made profit. While for the same case, if the selling price is less than the cost price of that
product, it is regarded as a loss.
Profit and Loss is an important topic from which questions are asked in most of the competitive exams like SSC
CGL, SSC CHSL, IBPS PO, SBI PO, SBI Clerk etc.
In this e-book we will be learning about the concept of Profit and Loss and also solve some questions related to
Profit and Loss.
Profit and Loss – Important Terms
Profit: Profit is defined as any amount that is gained by selling a product above its cost price.
Loss: Loss is defined as any amount that is lost by selling a product below its cost price.
Cost Price: The price at which the product or a commodity is purchased. It is also denoted as CP. There are two
kinds of cost.
a. Fixed Cost: The cost which is fixed or in other words cost that doesn’t change in any condition.
b. Variable Cost: The cost which can vary based on the number of units involved.
Selling Price: Selling price is the price at which the product is sold. It is denoted by SP.
Marked Price: Marked price is the price that is marked or labelled on the product. The selling price is usually lower
in such cases as some discount is offered.
Discount = Marked Price – Selling Price
Discount Percentage = (Discount/Marked price) x 100
Formula for Profit and Loss
Profit = Selling Price – Cost Price
Or Gain = Selling Price – Cost Price
Loss = Cost Price – Selling Price or CP-SP
Profit and Loss Percentage
Profit percentage = (Profit /Cost Price) x 100
Loss percentage = (Loss / Cost price) x 100
Selling Price (SP) = {(100 + P%)/100} x CP
1
Selling Price (SP) = {(100 – L%)/100} x CP
Cost Price (CP) = {100/(100 + P%)} x SP
Cost Price (CP) = {100/(100 – L%)} x SP
In case a product is sold at m% profit and then again sold at n% profit then the actual cost price of the product will
be: CP = [100 x 100 x P/(100+m)(100+n)]. In case of loss, CP = [100 x 100 x P/(100-m)(100-n)]
Solved Questions
Q-1. The cost price of an article is Rs. 480. If it is to be sold at a profit of 6.25 percent, how much would be
its selling price?
A. Rs. 519
B. Rs. 510
C. Rs. 530
D. Rs. 503
Solution: B. Rs.510
Here,
CP = 480
Profit Percentage = 6.25%
Now, Selling Price can be calculated using the formula
Selling Price (SP) = {(100 + P%)/100} x CP
SP = {(100+6.25) / 100} x 480
= (106.25/100) x 480
= 1.0625 x 480
= 510
Q.2 After allowing 20% and 15% successive discounts, the selling price of an article becomes Rs. 3,400;
then the marked price will be
A. Rs. 4,800
B. Rs. 4,400
C. Rs. 5,000
D. Rs. 4,500
Solution: C. Rs. 5,000
2
Let M.P. = 100x
On allowing 20% discount = 20x
Price = 100x- 20x
= 80x
Second discount allowed is of 15%
15/100 × 80x
= 12x
Price after second discount = 80x -12x

= 68x
Now,
68x = 3400
x = 3400/68
= 50
Therefore, marked price = 100×50

= 5000
Q-3. A vendor buys pens at the rate of 4 for Rs 5 and sells at the rate of 4 for Rs 6. What will be the result?
A. 40% gain
B. 20% loss
C. 20% gain
D. 40% loss
Solution: C. 20% gain
Here,
CP of 1 Pen = Rs.5/4
= Rs.1.25
Now SP of 1 Pen = Rs. 6/4

= Rs. 1.50
As the selling price is more than the cost price, the vendor makes a profit and the profit percentage can be
calculated as follows
Here Profit = SP – CP
= 1.50 – 1.25
= 0.25
3
Profit percentage = (Profit /Cost Price) x 100

= (0.25/1.25) x 100
= 0.2 x 100
= 20%
Q.4- An article is sold a profit of 20%. If the selling price is doubled, the profit will be:
A. 100%
B. 150%
C. 200%
D. 140%
Solution: D. 140%
Here,
Let CP = 100
Profit = 20%
SP = 100 + 20/100 × 100

= 100 + 20
= 120
If selling price is doubled
Then SP = 2×120
= 240
Profit = 240-100
= 140
Profit % = (Profit /Cost Price) x 100

= (140/100) x 100
= 1.4 x 100
= 140%
4
Q.5 – If a pen cost Rs.70 after 20% discount, then what is the actual price or marked price of the pen?
A. 84
B. 87.5
C. 95
D. 85
Solution: B. 87.5
Here,
SP = 70
Discount = 20%
MP x (100 – 20) /100 = 70
MP x 80/100 = 70
MP = 70×100/80
MP = 87.5
Conclusion
We hope that this e-book will help candidates in understanding the Profit and Loss Concept and prepare well for the
competitive exams. Stay connected to Oliveboard for more such updates.
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FREE eBook

PROFIT AND LOSS

FOR SSC CGL, SSC CHSL Exams

Profit and Loss Concept for SSC CGL Tier-2

Profit and Loss – Important Terms

Discount = Marked Price – Selling Price

Discount Percentage = (Discount/Marked price) x 100

Formula for Profit and Loss

Profit = Selling Price – Cost Price

Or Gain = Selling Price – Cost Price

Loss = Cost Price – Selling Price or CP-SP

Profit and Loss Percentage

Profit percentage = (Profit /Cost Price) x 100

Loss percentage = (Loss / Cost price) x 100

Selling Price (SP) = {(100 + P%)/100} x CP

Selling Price (SP) = {(100 – L%)/100} x CP

Cost Price (CP) = {100/(100 + P%)} x SP

Cost Price (CP) = {100/(100 – L%)} x SP

Profit Percentage = 6.25%

Now, Selling Price can be calculated using the formula

Selling Price (SP) = {(100 + P%)/100} x CP

SP = {(100+6.25) / 100} x 480

Solution: C. Rs. 5,000

Let M.P. = 100x

On allowing 20% discount = 20x

Price = 100x- 20x

Second discount allowed is of 15%

Price after second discount = 80x -12x

Therefore, marked price = 100×50

Solution: C. 20% gain

Now SP of 1 Pen = Rs. 6/4

Profit percentage = (Profit /Cost Price) x 100

SP = 100 + 20/100 × 100

If selling price is doubled

Profit % = (Profit /Cost Price) x 100

MP x (100 – 20) /100 = 70

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