12

PROFIT AND LOSSs

o1 INTRODUCTION

I nt h e
chapter, we have learnt about percentage and simple problems on computing
previous.

ntage. In this chapter, we shall learn to apply the concept of percentage to find profit and
sin buying and selling goods in our day-to-day life.
PROFIT AND LOss
12.2
r day-to-day life, we buy goods from the shopkeepers in the market which they buy either
t y from nmanufacturers or through wholesalers. In order to earn money, the shopkeepers
direc

llgoods at rate that is higher than the rate at which they bought them. The price at which
a
ashopkeeper buys the goods is called cost price as defined below.

c0STPRICE The money paid by the shopkeeper to buy the goods from a manufocturer o r a
rholesaler is called the cost price ofthe shopkeeper and it is abbreviated as Cc.P.
that is than the price at
As mentioned above the shopkeepers sell goods at a
price that more
shich they bought them. This price is called the selling price as defined below
SELLING PRICE The price at which a shopkeeper sells the goods is called the selling price of
the shopkeeper and it is abbreviated as S.P.
fthe selling price (S.P.) of an article is greater than the cost price (C.P.), then the shopkeeper
makes a gain or profit and the amount of profit is equal to the difference between the selling
price and the cost price. Thus, if S.P. > C.P. Then,
Profit = S.P. - C.P.

S.P. = Profit + C.P. and, C.P. = S.P. - Profit

lfthe selling price (S.P.) of an article is less than the cost price (C.P.), then the shopkeeper
suffers a loss and the amount of loss is equal to the difference between the cost price (C.P.)
and the selling price (S.P.). Thus, if S.P.< C.P., then
Loss = C.P. - S.P.

S . P , =C.P. - Loss and, C.P. = S.P, + Loss

sually, a shopkeeper has to bear some additional expenses such as labour charges, freight
Such charges are called
drges and maintenance charges for the goods before they are sold.
Overhead charges.
of the
OVerhead charges become a part of the cost price. Thus, the effective cost price and
s1s equal to the sum of the actual payment made while purchasing the goods
Overhead charges i.e,
tfective cost price
ve COst pri = (Payment made while purchasing the goods) + (Overhead charges)
PROFIT PERCENT AND Loss PERCENT
0 Compare the profit or loss in two or more sales, we usually express profit and loss
12.2
nathematics for Class
that would be ClassV
as a percent of the cost price. The profit percentage is

Rs
of Rs
C.P. of 100 rice. profit percentage
The
18

100. Similarly, the loss percentage is the

i0
the profit
would be made for tainaed for
ohtn:

Rs 100.

Thus, we have
Profit =TO 100, Loss per cent C.P
per cent Loss100
C.P.
Following examples will illustrate the computation of profit and loss and also the profit and
loss percentages.

ILLUSTRATIVE EXAMPLES

Type ON FINDING PROFIT OR LOSsWHEN C.P. AND S.P. ARE GIVEN

Example1 Given the following values, find the unknown values

(i) C.P. = Rs 500, S.P = Rs 600, Profit/Loss = ?
(ii) C.P. = Rs 1270, S.P. = Rs 1250, Profit/Loss = ?

(iii) C.P. =?, S.P. = Rs 2390, Profit Rs 120.50

iv) C.P. = Rs 72, S.P. = ?, Loss =Rs 15.601
Solution (i) We have, C.P. = Rs 500, S.P. = Rs 600
Clearly, S.P. > C.P. So, there will be profit given by
Profit = S.P. - C.P. = Rs ( 600- 500) = Rs 100

ii) We have, C.P =Rs 1270, S.P. = Rs 1250

Since C.P. > S.P. So, there will be loss given by
Loss = C.P.-S.P. = Rs (1270- 1250) = Rs 20

(ii) We have, S.P. = Rs 2390 and Profit = Rs 120.50

Profit =S.P. -C.P.

C.P. =S.P.- Profit

C.P. Rs 2390- Rs 120.50 =Rs (2390-120.50) = Rs 2269.50

(iv) We have, C.P. = Rs 72 and Loss = Rs 15.60

Loss = C.P. - S.P.

S.P. =C.P. -Loss =Rs 72- Rs 15.60 Rs

=
(72-15.60) =
Rs 56.40
Type Il 0N COMPUTING C.P. OR S.P. WHEN PROFIT OR LOSS IS GIVEN

Example 2 Compute the missing enteries in the following table (whereever

possible):
Cost price Overhead Selling price Profit Loss
(C.P.) expenses (S.P)
(i) Rs 450 Rs 70
Rs 85
ii) Rs 8000 Rs 200
Rs 530
(iii) Rs 32000 Rs 3000 Rs 38000
(iv) Rs 750 Rs20
Rs 50
(v) Rs 1050 50
Rs 70
 123

i) We have, C.P. = Rs 450 and Overhead expenses = Rs 70.

SMIMON
Effectivecost price Rs (450 + 70)= Rs 520.
Now,
Profit S.P, - Effective C.P.

S . P . = Effective C.P. + Profit

S . P . = Rs(520 +85) Profit= Rs 85 (given)

S.P.= Rs 605
(ii) We have, C.P. = Rs 8000, Overhead expenses = Rs 200 and Loss = Rs 530

Now,
Effective cost price (E.C.P.) =C.P. +Overhead expenses
Effective cost price (E.C.P.) = Rs ( 8000+ 200) Rs 8200
We know that
Loss = E.c.P.-S.P.
S.P. = E.C.P. -Loss
= Rs (8200-530) = Rs 7670
(ii) We have, C.P. = Rs 32000, Overhead expenses = Rs 3000 and S.P. = Rs 38000

E.C.P. = C.P. + Overhead expenses

E.C.P. = Rs (32000 + 3000) = Rs 35000

We have,
S.P. = Rs 38000

Clearly, E.C.P.< S.P. Therefore, therewill be profit given by

Profit S.P. - E.C.P. =Rs (38000-35000) = Rs 3000.
(iv) We have, C.P, = Rs 750, Overhead expenses = Rs 20 and Profit = Rs 50.

Now,
E.C.P. = C.P. + Overhead expenses = Rs(750 + 20)= Rs 770.

It is given that there is profit of Rs 50.

S.P. E.C.P. + Profit = Rs ( 770 + 50) = Rs 820.

(v) We have, C.P. = Rs 1050, Overhead expenses = Rs 50 and Loss = Rs 70

E.C.P. = C.P. + Overhead expenses = Rs ( 1050 +50)= Rs 1100.
It is given that there is loss of Rs 70.
S.P.= E.C.P. - Loss = Rs( 1100- 70) = Rs 1030
PeON FINDING PROFIT OR LOSS PER CENT
ample 3 Find the gain or loss percent, if
G) C.P. = Rs 500 and S.P. = Rs 565 ii) C.P. = Rs 700 and S.P. = Rs 630
Solution i) We have, C.P. = Rs 500 and S.P, = Rs 565
Since S.P. > C.P. Therefore, there is gain given by
12.4 Mathematics for
Class y
Rs 65
Gain =
S.P. -

C.P. = Rs 565-Rs 500 =

= 500x 100
%=13%
Gain per cent Gain100
C.P |%
(ii) Since C.P. =Rs 700 and S.P. =Rs 630

Clearly, S.P. < C.P. So, There is loss given by

Loss = C.P..- S.P. =Rs (700-630) = Rs 70
70
Loss per (ent C P 1 0 0 |% = 700
x100 9% =10%
Example 4 If the profit rade on a packet of tea is Rs 4 and the cost price of the pace.
ket is
Rs 20, then how much is the profit percentage?
Solution We have, C.P. Rs 20 and Profit = Rs 4.

4
Profit Per cent =Op.x 100 % = x100 %=20%
A box of Alphon=o manguus was purchased by a fruit-seller for Rs 300. HowWe
Example5 he had to sell then for Rs 255 because they began to get over ripe. What was th
loss percentage?
Solution We have, C.P. = Rs 300 and S.P. = Rs 255
Since C.P.> S.P. Therefore, there is loss given by
Loss = C.P. - S.P. = Rs (300-255) = Rs 45

Now,
Loss per cent = | x100 % =| x100 % = 15%
300
Hence, there was 15% loss.

Example6 Karim bought 150 dozens pencils at Rs 10 a dozen. His overhead expenses
were Rs 100. He sold them at Rs 1.20 each. What was his profit or loss
percent?

Solution We have,
Cost price of one dozen pencils = Rs 10
Cost price of 150 dozens pencils = Rs (150 x 10) = Rs 1500
Overhead expenses = Rs 100
Effective cost price = Rs (1500+ 100) = Rs 1600
Now,
Selling price of one pencil = Rs 1.20
Selling price of one dozen pencils = Rs (12 x 1.20) = Rs 14.40
Selling price of 150 dozens pencils = Rs (14.40 x 150) = Rs 2160
Here, S.P. > E.C.P. So, there is profit given by
Profit = S.P. - E.C.P. = Rs 2160 - Rs 16000 = Rs 560

560
Now, Profit per cent %=
1600x100 |%=35%
E.C.PX100

Example 7 Subramaniam bought 100 eggs for Rs 50. Out of these, 4 eggs w e r e found to
broken. He sold the remaining eggs at the rate of Rs 8.50
per dozen. Fin
gain or loss percent.
P r o la n aLOSs
12.5

We have,
SOUton
.P. of 100 eggs = Rs 50.
It is given that 4 eggs were found to be broken.
The number of remaining eggs which were sold in the market = 100-4 = 96.
It is given that the remaining eggs were sold at the rate of Rs 8.50 per
dozen.
S.P. of 12 eggs = Rs 8.50

8.50
S.P.of1 egg =Rs 12

S.P.
S.P. of
of 96 eggs
eggs = Rs = x96= Rs 68
96 =

s12 )
Clearly, S.P. > C.P. So, there is gain given by
Gain S.P. - C.P. = Rs 68-Rs 50 = Rs 18

Gain per cent =| x100 |%=x100

50
%=86%
at 8 for Rs 10. Find his gain or loss
Example8 A grocer buys eggs at 10 for Rs 8 and sells
percent.
Solution We have, LC.M. of 10 and 8 = 40. So, let the number of eggs bought be 40.
Now,
C.P.of 10 eggs = Rs 8

of 40 eggs Rs0x40 Rs
C.P. 32 =

Again, S.P. of 8 eggs = Rs 10

10
S.P. of 40 eggs =Rsx40-Rs
8
50
Now, C.P. = Rs 32 and S.P.= Rs 50

Clearly, S.P. > C.P. So, there is gain given by

Gain S.P. -

C.P. = Rs 50 -

Rs 32 = Rs 18

Gain 100%
(Gain100
Gain per centc.P. |% 18100
32
s%==46=56%
C4ample 9 The selling price of 10 articles is the same as the cost price of 11 articles, find
gain percent.
Solution Let the cost price of each article be Rs*
We have,
C.P. of 11 articles = Rs 11x.
S.P. of 10 articles =

C.P. of 10 articles =10*

1lx Rs 10x Rs
purchase of articles =Rs x
-
=

Gain on the

Hence, Gain percent =px100

C.P.
l% =x100 %=10%
Exarm
e10 Neeru bought 1600 bananas at Rs 3.75 a dozen. She sold 900 of them at 2 for
Re 1 and the remaining at 5 for Rs 2. Find her gain or loss percent.
Solution We have,
Cost of one dozen of bananas = Rs 3.75
 12.6
Mathematics for Class

3.75 x1600= Rs 375xl=

Cost of 1600 bananas K3|12 = 12
Rs 500
Thus, C.P. of 1600 bananas = Rs 500
900
for Re l= Rs Rs 450
Now, Selling price of 900 bananas at the rate of 2
900 = 700 bananas at the rata
rate o
of the remaining i.e., 1600
-

Selling price
for Rs 2

=
Rsx700=Rs280
Rs 730
S.P. of 1600 bananas Rs (450 + 280)
=
=

Since S.P.> C.P. So, there is gain given by

Gain S.P. -C.P. = Rs (730-500) = Rs 230
230
Hence, Gain percent = X100 % = x100 %=46%
CENT ARE GIVEN
TypeV ON FINDING THE S.P. WHEN C.P. AND PROFIT OR LOSS PER
Example 11 Bashir bought an article for Rs 1215 and spent Rs 35 on its transportation. A
of 16%?
what price should he sell the article to have a gain
The effective cost price of the article is equal to the price at which it was bought
Solution
plus the transportation charge.
C.P. of the given article = Rs (1215 + 35) = Rs 1250
Gain percent = 16%

Gain 16% ofcost price = Rs| x1250 |= Rs 200

KS200
100
S . P . = C.P. + Gain = Rs 1250+ Rs 200 = Rs 1450

Example 12 Krishnamurti bought oranges at Rs 5 a dozen. He had to sell them at a lssdf

4%. Find the selling price of one orange.
Solution We have, C.P. of one dozen oranges = Rs 5.
Loss percent = 4%

Loss=-4% of Rs 5 =Re 1005=Re

S.P. =C.P. -Loss =Rs|E

Thus, S.P. of one dozen oranges = Rs 24

5

S.P.ofone orange =RexRe=x100 paise = 40 paise

Example 13 A vendor purchased 40 dozen bananas for Rs 250. Out of these, 30 banai nas

were rotten and could not be sold. At what

the
hould he sell
rate per dozen shoi
remaining bananas to make a profit of 20%
Solution We have,
C.P. of bananas = Rs 250, Gain required 20%
 12.7
an0LOSS

20
Gain = 20% of C.P. =
20% of Rs 250 Rs xx 250= Rs 50
100
S.P. = C.P. + Gain
Now,
S.P. Rs 250+Rs 50= Rs 300

Number of good bananas =

(40x12-30)= 450
S.P. of 450 bananas = Rs 300

300
S.P.S.P. of 12 bananas =Rs|x12|=Rs 8
to
bananas at Rs 8 per dozen
Hence, the vendor should sell the remaining
make a profit of 20%

WHEN S.P. AND PROFIT OR LOSS ARE GIVEN

V ON FINDING THE COST PRICE much did the
sells his scooter for Rs 18000 making a profit of 20%. How
amole 14 Aman
scooter cost him?
100. Then, Profit Rs 20
price of the scooter be Rs
=

Let the cost

lution
S.P.= C.P. + Profit = Rs 100+ Rs 20 = Rs 120

Rs 100
Thus, if the S.P. is Rs 120, then C.P.
=

Rs
(10 X18000 |= Rs 15000
Ifthe S.P. is Rs 18000, then C.P.
=

120

cost of the scooter =Rs 15000

Hence, the
Rs 18000, I loose 20%. What did I pay for it?
ample 15 By selling an A.C. for
We have, S.P. Rs 18000, and Loss 20%
=
odlution =

Let the C.P. of A.C. be Rs 100. Then,

Loss = C.P. - S.P.

Rs 100- Rs 20 = Rs 80
S.P. = C.P. -Loss =

Rs 100
Thus, ifthe S.P. is Rs 80, then C.P.
=

100
Rsx18000 Rs 22500 =

Ifthe S.P. is 18000, then C.P.

=

80

S.P. Rs 27600, what

16 A farmer sells his product at a loss of 8%. If his
was was
Inple his actual loss? What was his cost price?
Solution Let the cost price of the product be Rs 100. Then,
Loss 8% of Rs 100 = Rs 8
Loss = 8%
S.P. = C.P. Rs 100 Rs8 =Rs 92
-Loss =

Thus, if S.P. is Rs 92, then C.P. Rs 100

=

fsP.is Rs 27600, then C.P. Rsx27600

92
Rs 30000 =

Hence, C.P. =Rs 30000.

Actual loss = C.P.- S.P. = Rs 30000-Rs 27600 = Rs 2400
 12.8 Mathematics for Cla
EXERCISE 12.1

1. Given the following values, find the unknown

values Profit/Loss = ?
() C.P. =R 1200, S.P.=1350,
Profit/Loss = ?
(i) C.P. =R 980, S.P.=940,
Profit 7 55.50
i) C.P. =720, S.P. =?,
Loss = 732
(iv) C.P. =? S.P. 1254,
2. Fillin the blanks in each of the following:
(i) C.P. =R 1265, S.P.=1253, Loss =
(i) C.P. =7.. Profit 150
S.P.= 450,
(ii) C.P. = 7 3355, Profit=.
S.P.=7355,
(iv) C.P. =.. Loss= 5.50
S.P.=2390,
3. Calculate the profit or loss and profit or loss per cent in each of the following caseS:
() C.P. =4560, S.P. = 7 5000 C.P. 7 2600, S.P. = 72470
(i) =

(ii) C.P. =7332, S.P. =7 350 (iv) C.P. ={ 1500, S.P. = { 1500

4. Find the gain or loss per cent, when:

) C.P.=R 4000 and gain =7 40 (ii) S.P. =71272 andloss =328
Gi) s.P. = 1820 and gain = 420.
5. Find the gain or loss per cent, when:
i) C.P. = 7 2300, Overhead expenses = 7 300 and gain = R260.

i) C.P. = 73500, Overhead expenses = 150 and loss = 7 146

6. A grain merchant sold 600 quintals of rice at a profit of 7%. If a quintal of rice cost him 250
and his total overhead charges for transportation, etc. were 7 1000 find his total profit andte
selling price of 600 quintals of rice.
7. Naresh bought 4 dozen pencils at 10.80 a dozen and sold them for 80 paise each. Find hs
gain or loss percent.
8. A vendor buys oranges at 26 per dozen and sells them at 5 for7 13. Find
his gain per cent
9. MrVirmani purchased a house for 365000 and
spent 135000 on its repairs. If he soldit to
550000, find his gain percent.
10. Shikha purchased a wrist watch for R 840 and sold
it to her friend Vidhi for7910. Find hergall
percent.
11. A business man makes a 10% profit by selling a toy costing him 120. What is the sel
price?
(12. Harish purchased 50 dozen bananas for R135. Five dozen bananas
because they were rotten. At what price per dozen should Harish sell the could not be so
so that he makes a profit of 20% ? remaining banai
13. A woman bought 50 dozen eggs at 6 6.40 a dozen. Out of be
broken. She sold the remaining eggs atb5 paise
these 20 eggs were found to
were found
per egg. Find her gain or loss percent.
14. Jvotsana bought 400 eggs at T8.40 a dozen. At what ms0

as to earn a profit of 15%? price per hundred must she sell them
ianaLoss
12.9
Ashopkeep akes
make a profit of 15% by selling a book for 230. What is the C.P. and the
a c t u ap
l rofit?

A booksel,
all his books at a
eeler sellsdoes profit of 10%. If he buys a book fron the distributor at
how
much he sell for? it
200,
t huvs 100 dozen roses at 2
a dozen. By the time the flowers are delivered, 20 dozen
lorist
ATare mutilated and are thrown away. At what price should he sell the rest if he needs to
make a
20% profit on his purchase?
his
would his
What would
soling an article
Byselli
if he the article for?
OU7.
C.P. ? What
for R240, a man makes a profit of 20%. What is his C.P. What

proit,percent
be sold 275?

ANSWERs
1 0 Profit=150 i) Loss=740 (ii) S.P. = 7 775.50
1286
() C.P. =
12 (i) C.P.=7300 (ii) Profit = 74000
2 0 Loss=
M) C.P.=2395.50

Profit ={440, Profit % = 9.65% (ii) Loss 7 130, Loss %=5%

=

)Profit R 18, Profit % = 5.42% (iv) Profit 0, Profit % 0%

= =

(i) Loss= 20.5% (ii) Gain 30%

4) Gain= 1%
=

0 Gain= 10% (i) Loss=4%

6 Profit=10570, Selling price: 161570

100
7. LosS= %8. 8. 20% 9. 10% 10.
3
11. 132
9

5
12. 3.60 13. % loss 14. 780.50 15. C.P. = 7 200, Profit =730
16
16 220 17. R3 per dozen 18. C.P. 7 200, 37.5%

OBJECTIVE TYPE QUESTIONS

Hark the correct alternative in each ofthe following:

1. fCP=R200 and SP =7 250, then the profit or loss is equal to

a50 loss 50 profit (c)25profit (d)25loss

120 and SP =R 80, then profit or lossis equal to
a)40loss (b) R 60 loss (c)R40 profit (d)60profit
3 A U'ader purchased a bicycle for 7 2500 and sold at R 2700. His profit percentage is

(a) 8% (b) 10% (c) 6% d) 4%

.
fCP=950 and gain 6 %, then S.P. =

a) 1100 (b) 1117 (c) F1107 (d) 1170

.P=924 and gain = 10%, then C.P. =
a) 480 (b) 804 (c)408 (d) 7840
6.Onnselling
g a pen for R 100, a shopkeeper gainsR 15. The cost price ofthe pen is
a) 115 (b85 (c) 70 (d) 130
n
fanga plastic chairfor 630, a man loses 10%, the cost price of the chair is
a) 567 (b) 693 (c 700 (d) 730
The C.P.of a chai
nair is 7 3300o. If it is sold at a loss of 10%, then SP is
a) 3000 (b) 73070 (c)2790 o)R2970
e price of 15 pens is equal to the selling price of 20 pens, than the loss per cent is
ey 25% (b) 20% (c) 15% (d) 10%
12.10 Mathematics for Cla
V
4 for a rupee. iis gain % is
. A Vendor bought lemons at 6 for a rupee and sold them at
(d) 16%
(a) 50% (b) 40 % (c)33%
20 % what should
loses 20 %. In orderto gain uld be the
On selling a pen for 48, a shopkeeper
selling price? (d) 72
(a)selling
52 an article for
(b)T 144 (c) 6 8
56a man loses 10
12. On %. At what price should ne sell it to gain 10
(d)192
(a) F158.40 (b) 172.80 (c) T176
13. f the cost price of 15 pens is equal to the selling price of 20 pens, then tne ioss per cent is
(d) 18%
(a) 25% (b) 20% (c) 15%
14. It the cost price of 6 pencils is equal to the selling price of 5 pencils, tnen the gain per centis
(d) 25 %
(a) 10% (b) 20% (c) 15%

ANSWERS

5. (d) 6. (b) 7.
1. (b) 2. (a) 3. (a) 4. (c)
12. (c) 13. (a) 14. ()
8. () 9. (a) 10. (a) 11. (d)

THINGS TO REMEMBER

1. The money paid by the shopkeeper to buy the goods from a manufacturer or a wholesaler is called the
cost price of the shopkeeper. The cost price is abbreviated as C.R
2. The price at which a shopkeeper sells the goods is called the selling price of the shopkeeper. The
selling price is abbreviated as S.P
3. Effective cost =Costprice+Overhead charges.
4. f S.P >C.P, then there is gain given by Gain = S.P - C.P

5. IfS.P <C.P, then there is loss given by Loss = C.P- S.P

6. Gain or loss is calculated on the cost price.

Gain Loss
7. Gain percentc.P.x100 and Loss percent= 100