Terms used

Cost Price ( C.P ) : Article is purchased

Selling Price ( S.P ) : Article is sold

Marked Price : Marked Price for the article.

I. If Cost price (C.P.) =  Selling price (S.P.),  No Loss or No Gain.

II. If Selling price (S.P.) > Cost price (C.P.), Seller have a Profit or Gain   

                Gain or Profit = S.P. - C.P

III. If the cost price (C.P.) > Selling price (S.P.), Seller have a loss,   

                 Loss = C.P. - S.P.

Important Formulae

% Profit = ( Profit / CP )  * 100

% Profit = ((SP – CP) / CP) * 100

% Loss= (Loss / CP) * 100

  SP = CP * (( 100+ % Profit) / 100 )

  SP = CP * ((100- % Loss) / 100)

Note: If two articles are sold at same price, one at a loss of R% and another at a profit of R%, there will always be a net loss of R² /100

The cost price of an article is Rs. 500 and selling price is Rs. 720, then find the profit percentage.

a) 38%                          b) 28%                         c) 44%                          d) 36%

Solution:

Profit% = [(SP – CP)/CP] × 100% = [(720 – 500)/500] × 100% = 44%.

Shortcut:

Consider, cost price (CP) is 100%

CP = Rs. 500 = 100%

SP = Rs. 720 = [(720 × 100)/500] = 144%

⸫ Profit percentage = SP – CP = 144% – 100% = 44%.

Answer: c

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