Profit and Loss Formula Questions

Do you aspire to study abroad? If yes, then you must be trying your best to hit the bull’s eye in the GMAT exam. Graduate Management Aptitude Test (GMAT) is a prestigious test which one has to qualify in order to opt for overseas education in the Management domain. Being one of the most reputable competitive exams, GMAT assess the applicants through sections like Logical Reasoning, Quantitative Aptitude, English Language etc. If you are appearing for the GMAT exam this year, here is a blog to help you with some profit and loss formulas and questions to practice.  

Profit and Loss Concepts

Let us check out some of the most important concepts of profit and loss. 

Profit (P)

The amount gained by selling a product with more than its cost price. 

Loss (L)

The amount that you lose after selling a product with less than its cost price. 

Cost Price (CP)

The amount paid for a product or commodity to purchase it is called a cost price. It can be divided into two parts:

• Fixed Cost
• Variable Cost

Selling Price(SP)

The amount for which the product is sold is called the Selling Price. 

Marked Price Formula (MPF)

Discount=Marked price- selling price
Discount percentage=(Discount/Marked price)*100

Profit and Loss Examples

• If you buy a bag for Rs 50 and sell it for Rs 80, the profit is Rs 30.
• If you buy a bag for Rs 50 and sell it for Rs 30, the loss is Rs 20.
• If you buy a bag for Rs 100 and sell it for Rs 120, the profit is Rs 20%.

List of Profit and Loss Formula

Let us look at some important profit and loss formulas to get a better hold of the concept:

Gain = SP- CP 

Loss = CP- SP

Gain% = (Gain/ CP)x 100

Loss% = (Loss/ CP)x 100

SP= [(100+ Gain%)/ 100]x CP

SP= [(100- Loss%)/ 100]x CP 

CP= [100/ (100+ Gain%)]x SP

CP= [100/ (100- Loss%)]x SP

Also Read: Sequence and Series

Profit and Loss Formula Marked Price

Marked Price is an additional price that is put up by the shopkeepers upon the selling price to offer a certain discount.

Discount = Marked Price – Selling Price

Discount Percentage = (Discount/Marked price) x 100

Profit and Loss Formula with Example

Now that you are clear with profit and loss formulas, below mentioned are some solved examples that will help you understand the usage of the above-mentioned and related formulas.

Example 1: Sunita bought 10 shirts for Rs.40 and sold 8 of them at Rs. 35. Calculator gain or loss %. 

Solution:

CP of 10 toys= Rs. 40 
CP of 1 toy= Rs. 4
SP of 8 toys= Rs. 35 
SP of 1 toy= Rs. 35/8
Therefore, Gain =35/8 – 4 = ⅜
Gain percent= (3/8)/4 x 100= 9.375% 

Example 2:  A merchant sells his goods using weights 15% less than true weights and makes a profit of 20%. Find his total gain %. 

Solution:

Let us consider 1 kg of goods bag. Its actual weight is 85% of 1000gm= 850gm 
Let the cost price of each gram be Re. 1. Then the CP of each good bag= Rs. 850
SP of 1 kg bag= 120% of the true CP 

Therefore, SP 120/100 x 1000 = Rs. 1200
Gain = 1200- 850= 350
Gain %= 350/850 x 100= 41.17 %

Example 3: Riya sold a pen at a 12% profit. On selling it for Rs 18 more she would get a profit of 18%. What is the CP of the pen?

Solution:

SP = CP [1 + (Gain % x 100)]
Firstly 
SP= CP (1 + 0.12) = 1.12 CP 
Secondly
SP= CP (1 + 0.18)= 1.18 CP
So the difference between first and second cases is Rs. 18 (given)

Therefore, 
1.18 CP  – 1.12 CP = 18
0.06 CP = 18
CP = 18/0.06
CP= 300
The cost price of pen is Rs. 300

Check out: Arithmetic Questions for GMAT Quantitative Reasoning Section

Example 4: My mother bought two dresses for Rs. 2500 each. If she sells one at a profit of 5%, then at what price she should sell the other dress to make a profit of  20% on the whole.

Solution:

Let the other profit % be x  
Then, the equation becomes 
105/100 x 2500 + [(100+ x)/ 100]x 2500= 120/100 x 5000 
x= 35

Hence, if she makes a profit of 35% on the second dress, it comes to a total of 20% profit on the whole.

You cannot miss: Maths Tricks to Ace GMAT Quant Section

Profit and Loss Formula PDF

Here is a PDF that will assist you with all the important Profit and Loss formulas-

Profit and Loss Formula and Tricks for Competitive Exams

Listed below are some important tricks that can turn out to be handy during competitive exams– 

1. For false weight, profit percentage will be P% = (True weight – false weight/ false weight) x 100.
2. When there are two successful profits say a% and b%, then the net percentage profit equals to (a+ b+ ab)/100
3. When the profit is a% and loss is b%, then the net % profit or loss will be: (a- b -ab)/100
4. If a product is sold at a% profit and then again sold at b% profit then the actual cost price of the product will be: CP = [100 x 100 x P/(100+a)(100+b)]. In case of loss, CP = [100 x 100 x P/(100-a)(100-b)]
5. If P% and L% are equal then, P = L and %loss = P2/100
6. Profit, P = SP – CP; SP>CP
7. Loss, L = CP – SP; CP>SP
8. P% = (P/CP) x 100
9. L% = (L/CP) x 100
10. SP = {(100 + P%)/100} x CP
11. SP = {(100 – L%)/100} x CP
12. CP = {100/(100 + P%)} x SP
13. CP = {100/(100 – L%)} x SP
14. Discount = MP – SP
15. SP = MP -Discount

Profit and Loss Formula for Bank Exam

Apart from the above-mentioned formulas, here are the ones that can help you in qualifying bank exams-

1. Profit% Formula= 100 x Profit/Cost Price
2. Loss Percentage Formula= 100 x Loss/Cost Price
3. Profit= Selling Price – Cost Price (when SP>CP)
4. Loss= Cost Price – Selling Price(when CP>SP)
5. Discount= Marked Price – Selling Price
6. Selling Price= Marked Price – Discount

Profit & Loss: Solved Examples, Practice Time!

More Practice Questions

After these examples, now let us check how much you have grasped the profit and loss formulas by solving the below-mentioned questions on your own.

1. In a certain mart, the profit is 320% of the total cost. If the cost increases by 25% but the SP remains constant, approximately what percentage of the selling price is profit?
2. If the selling price is doubled, the profit triples. Find the profit per cent 
3. Himanshu bought 6 pencils for a rupee. How many for a rupee he must sell to gain 20% profit?
4. A manufacturer sells a table for Rs. 2400 and made a profit of 25% in the process. Find his total profit percent if he had sold his good for Rs. 2040.
5. While selling 10 mangoes, a fruit seller incurred loss equal to the cost price of 3 mangoes. Find the loss percent. 
6. An article is sold for Rs 5400 at a profit of 35 %. What would have been the actual profit or loss if it had been sold at Rs 2800?
7. Aman, Bharat and Chhavi enter into a partnership. Aman invests some money at the beginning, Bharat invests double the amount after 6 months, and Chhavi invests thrice the amount after 8 months. If the annual gain is Rs. 18,000. Aman’s share is?
8. Profit obtained by selling a dress at Rs. 520 is equal to 7/5th of the profit obtained by selling the same dress at Rs. 800. What is the cost price of the dress?
9. A person buys a horse for 15 pounds. After one year, he sells it for 20 pounds. After one year, again he buys the same horse at 30 pounds and sells it for 40 pounds. What is the overall profit percent for that person over both the transactions?
10. Harpreet Singh purchased 120 reams of paper at Rs. 80 per ream. He spent Rs. 280 on transportation. Paid octroi at the rate of 40 paise per ream and paid Rs. 72 to the coolie. If he wants to have a gain of 8 %. What must be the selling price per ream?

Thus, we hope that this blog on profit and loss formulas helped you gain insight into the concept. Do you aspire to study abroad but are clueless about how to proceed? Reach out to Leverage Edu and we will help you get started on the right career path.