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Profit and Loss, Discount
by Total Gadha - Thursday, 5 April 2007, 03:03 AM
  Profit and loss calculations are extensions of percentage only with a few twists thrown in because of play of words. In standard MBA exams, approaching these problems in a straight and simplified manner can save you from puzzlement.

I will start this chapter by giving two problems on profit and loss:

                                           profit and loss discount

Problem 1: you have decided to make a donkey out of me. You buy a widget for $100 and sell it to me for $200. You buy it back from me for $300 and then sell it back to me for $400. Have you made any profit in this process? If yes, how much.

Answer: If you said "no profit no loss" or "$100" you're in for a surprise. Let's see how much you earned in the process and how much spent.

Your earnings = $200 + $400 = $600.

Your spending = $100 + $300 = $400.

Therefore, the amount earned by you = $600 - $400 = $200.

Here's the first rule of profit and loss.

profit and loss discount

                                                     profit and loss discount                                         

Problem 2: Here is an old puzzle: There are two shopkeepers having shops side by side. The first shopkeeper sells bicycles. He sells a bicycle worth $30 for $45. One day a customer comes and buys a bicycle. He gives a $50 note to the shopkeeper. The shopkeeper doesn't have change so he goes to the second shopkeeper, gets the change for $50, and gives $5 and the bicycle to the customer. The customer goes away. The next day the second shopkeeper comes and tells the first shopkeeper that the $50 note is counterfeit and takes his $50 back. Now, how much does the first shopkeeper lose?

Answer: The answer to this tricky problem can be found easily if you consider the first shopkeeper as a system. From the second shopkeeper he took $50 and gave back $50 so there was no profit no loss. To the customer he gave $5 + $30 bicycle. Therefore, his total loss is $35, as shown below:

                                    profit and loss discount

Now, here's the second rule of profit and loss, and it is EXACTLY similar to the first rule:

profit and loss discount

Why am I stressing on this rule? Because if you need to pass through the maze of words which present a profit and loss problem, you will have to perform the simple arithmetic of calculating the total amount gained and total amount spent.

Now here are some terms associated with profit and loss:

profit and loss discount 

NOTE: the profit percentage and the loss percentage are always calculated on CP, unless stated otherwise.

profit and loss discount

There's one more term you should get familiar with in profit and loss. Suppose a shopkeeper buys a product for Rs100 and he wants to earn a profit of 20% on this product. Therefore, he would like to sell the product at Rs120. But a customer wants a discount on the price. If the customer gives a discount on selling price of Rs120, his profit will decrease. Therefore, the shopkeeper prices the product at a price which is higher than Rs120. Now when the shopkeeper gives discount, the price again falls to Rs120 and the shopkeeper maintains his profit percentage. The hiked price, above the selling price, on which discount is given is known as the Marked Price. See the figure below:

profit and loss discount

Before we continue with more problems, here is the most important rule to solve profit and loss problems:

profit and loss discount

I shall have to end here and leave the rest of it for my CBT Club students. I shall cover some problems based on this in the CBT Club this week.

 

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Re: Profit and Loss, Discount
by December Year - Wednesday, 11 April 2007, 05:23 PM
  P & L looks dicounted nowsmile
Re: Profit and Loss, Discount
by Total Gadha - Wednesday, 11 April 2007, 08:05 PM
  Hi December Year,

I hope it's an "all profit, no loss" discount. smile

Total Gadha
Re: Profit and Loss, Discount
by RAJAT SAGAR - Saturday, 14 April 2007, 02:03 PM
  great help TG!! thanx dude!
Re: Profit and Loss, Discount
by Total Gadha - Sunday, 15 April 2007, 06:29 AM
  Hi Rajat,

Good that you found it useful. smile

Total Gadha
Re: Profit and Loss, Discount
by Nitya S - Thursday, 19 April 2007, 02:18 PM
 

Hi TG,

Thanks for the help

i will go do the p&l again today. I sincerely believe this will increase my score in this area to a good extent.

thanks again,

Nitya

Re: Profit and Loss, Discount
by paras udani - Sunday, 22 April 2007, 12:13 AM
  hie tg..its been very helpful for me...but can u plz include sum more sums....so tht i can practice more precisely as explanation is also given to me....
Re: Profit and Loss, Discount
by Total Gadha - Sunday, 22 April 2007, 03:06 AM
  Hi Paras,

Check the quizzes on the main page for more problems.

Total Gadha
Re: Profit and Loss, Discount
by flyto gmat - Wednesday, 30 May 2007, 09:28 PM
 

Hi TG,

This is in ref to solved example number 5. As soon as I read, " A retailer cheats both, while buying and selling goods", I start thinking that he is making profit on both transactions. Further reading the question reveals that "he uses a balance that shows 1000g when the actual quantity is 1100g". So, it gets confirmed that there is some profit involved here.

Should this not be considered as a part of overall profit?

Your approach suggests that you have considered the money spent, that is 1000 and then the money earned that is 1210 for calculating profit. But, this is only the second transaction. The first transaction where it is visible that the retailer is procuring the 1.1 goods at the price of 1 goods is not considered.

Please explain.......

Regards

f2g

 

 

Re: Profit and Loss, Discount
by Total Gadha - Thursday, 31 May 2007, 07:56 AM
  Hi flytogmat,

While buying, the retailer hasn't "earned" any money. He has only recieved more quantity for the same amount of money. The earnings on that extra quantity shows while selling. To avoid confusion like these only I ask you to ignore the intermediate transaction and just calculate the amount spent and amount earned in the end. smile

Total Gadha
Re: Profit and Loss, Discount
by rajat tiwari - Wednesday, 13 June 2007, 12:45 AM
  the exercise was really very good

thanks
Re: Profit and Loss, Discount
by amir khan - Friday, 20 July 2007, 10:36 PM
 

see example 2 on marked price...profit and loss

by giving discount of 20 percent.........?

now there is a formula of successive percentage

a+b+(ab/100)

using that formula we get 20+20+(20*20/100)=44

....nw my prob.....

look at example 2 after rule 3

if we use the same formula we get

-6.25+12.5+(-6.25*12.5/100)

but this is not equal to 7.14 percent ..where am i getting wrong???

Re: Profit and Loss, Discount
by Total Gadha - Saturday, 21 July 2007, 02:08 AM
  The second one is not a case of successive percentage increase/decrease.
Re: Profit and Loss, Discount
by amir khan - Saturday, 21 July 2007, 12:31 PM
 

fundamentals quantitative aptitude..career launcher...chapter..percentages

 

topic-faulty balances..

example44..a weighing balance shows 900 gm for 1 kg.what is net profit percentage if the trader marks-up his cost price by 20%??

solution:initially there is a loss of 10% because of defect in weighing balance.as there is a mark up of 20%,net profit (a+b+(ab/100)

=-10+20-(10*20/100)=8%

therefore there is a net profit of 8%...

now how this prob is different from ur last reply!!

Re: Profit and Loss, Discount
by Total Gadha - Saturday, 21 July 2007, 01:19 PM
  In your example there is a 10% loss because of faulty weight. In my example the shokeeper is gaining because he is using 6.25% less weight (selling 87.5 g as 100 g). calculate the gain percent in this case. 
Re: Profit and Loss, Discount
by amir khan - Sunday, 22 July 2007, 11:50 AM
 

sorry sir,but i am unable to understand what you are saying....

your reply was-"In your example there is a 10% loss because of faulty weight. In my example the shokeeper is gaining because he is using 6.25% less weight (selling 87.5 g as 100 g). calculate the gain percent in this case."  .....

now it was not 6.25 percent less weight but 12.5 percent less weight so i must put positive sign for 12.5 and negative sign for 6.25 ...in this way i will again get the same answer as i have solved above...sir please solve this problem using a+b+(ab/100) concept(as i have shown you in above example that your question is also successive percentage type question as can be seen from career launcher guide example)

Re: Profit and Loss, Discount
by Total Gadha - Monday, 23 July 2007, 10:12 AM
  sorry for that typo of 6.5. But no, you do not need to use 12.5. Figure it out. If some sells 87.5 g for 100 g, what is the gain percent? It's not 12.5.
Re: Profit and Loss, Discount
by amir khan - Monday, 23 July 2007, 07:44 PM
 

obviously you are right that  profit percentage is not 12.5..but....

if we visit our career launcher question and solution again,what we would find is that they have also not calculated profit percentage...

ok tell me difference between your question and career launcher question.

career launcher question:a weighing balance shows 900 gm for 1 kg.what is net profit percentage if the trader marks-up his cost price by 20%??

ur question:a dishonest shopkeeper sells goods at a price 6.25% less than cost price but uses 12.5% less weight.what is is profit percentage?

Re: Profit and Loss, Discount
by RIDHIMA CHOPRA - Monday, 29 October 2007, 04:32 PM
 

thanx tg sir

could plz solve some more problems on faulty weights like the last one

Re: Profit and Loss, Discount
by sunil garg - Friday, 27 June 2008, 11:55 AM
 

you are the master....

faulty weights qns were always a nightnmare for me but now they are my sitters

thanx ji carry on gr8 work......

Re: Profit and Loss, Discount
by Sid J - Monday, 15 September 2008, 08:27 PM
  You are great!!! Great online tutorial. Math topics made easy. Keep up the good work buddy.
Re: Profit and Loss, Discount
by Raunak Mehta - Tuesday, 16 September 2008, 09:33 AM
  Good One!!!!!....rather short way to get ur basics right
Re: Profit and Loss, Discount
by Rahul Sinha - Monday, 22 September 2008, 02:42 PM
 

Hi TG's,

I am having problem in below questions.Among few of them i was able to crack in but wanted to know the basics about those that's why posting it.

 

 1)A manufacture estimates that on inspection 12%  of the articles he produces will be
  rejected.He accepts an order to supply 22000 articles at Rs 7.50each.he estimates the  profit  on his outlay including the manufacturing of rejected articles to be 20%.
  Find the cost of manufacturing each article.

2)In order to maintain the price line a trader allows a discount of 10% on the marked
  price of goods in his shop.Howerver,he still makes a gross profit of 17% on the cost price.
  Find the profit percent he would have made on the selling price had he sold at the
  marked price.

3)A man buys 50kg of oil at Rs 10 per Kg and another 40kg of oil at Rs 12 kg and mixes
  them.He sells the mixture at the rate of Rs 11per kg.What will be his gain percent
  if he is able to sell the whole lot.

4)A shopkeeper sells sugar in such a way that the selling price of 950gn is the same
  as the cost price of 1kg.Find his gain percent?

5)A dealer buys eggs at Rs 36 per gross.He sells the egg at a profit of 12(1/2)% on the cost price What is the selling price per egg(Approximately)

6)On selling tea at Rs 40 per kg a loss of 10% is incurred.Calculate the amount of
  tea (in kg) sold if the total loss incurred is Rs 80.

7)A merchant baught two transistor which together cost him Rs 480.He sold one of them
  at a loss of 15% and other at a gain of 19%.If the selling price of both the
  transistor are equal.Find the cost of lower price transistor.

8)A manufacture makes a profit of 15% by selling a color TV for Rs 5750.if the cost of
  manufacturing increase by 30% and the price paid by the retailer is increased by 20%,
  Find the profit percent made by manufacture.

9)A reduction is the price of petrol by 10% enables a motorist to buy 5gallons more for
   $180.Find the original price of petrol.

 

Regard's

Rahul


Re: Profit and Loss, Discount
by rahul Sukhija - Monday, 30 March 2009, 07:48 PM
  Nice post....
keep up the good work.... smile
Re: Profit and Loss, Discount
by punit goyal - Monday, 13 April 2009, 05:01 AM
  formula is a+b-(ab/100)
Re: Profit and Loss, Discount
by bhavika bali - Saturday, 23 May 2009, 11:19 PM
  hey guyss
 could you please help me in getting the logic of the second solved example of the p&l part(oranges one)..i am not able to get the logic...
waiting for your help....
Re: Profit and Loss, Discount
by Ashok Amsamani - Wednesday, 27 May 2009, 10:08 AM
  Really fantastic discussion... Please keep posting more and more
Re: Profit and Loss, Discount
by vikas sharma - Wednesday, 3 June 2009, 12:40 PM
 

Hi rahul

 

sol of ur ques no2 is

let CP=rs100, then SP=117(as profit 17%)

marker price(1-discount/100)=S.P

MP*0.9=117

MP=130

so ans is 30%

--------------------------------------

ques 4->>>>let cost price is rs1/gram

let he bought 950g so total CP=rs950

total SP=1000

so profit=50/950)*100

 

Re: Profit and Loss, Discount
by amit bhoir - Saturday, 6 June 2009, 05:28 PM
 

hi rahul

is answer of problem 1 is Rs 5.1

Re: Profit and Loss, Discount
by abhishek tripathi - Friday, 21 August 2009, 02:08 AM
  hi tg sir..thx once again 4 dis awesome articlecool tell me where is da link 2 patnership and aevrage mixture and aleegations.thx
Re: Profit and Loss, Discount
by Varun Agrawal - Thursday, 3 September 2009, 06:33 PM
  Hi Rahul,

I got these as the answers of the questions you posted. See if they are correct.

1. Rs. 5.5
2. 11.1%
3. 1.02%
4. 5.2%
5. Rs. 40.5
6. 18.18 Kgs
7. Rs. 200
8. 6.01%
9. Rs. 3.25

Regards
Varun
Re: Profit and Loss, Discount
by raman goyal - Friday, 4 September 2009, 12:10 AM
  thnxx buddy .... u have done a g8t job...
wtng 4 some more..
Re: Profit and Loss, Discount
by Netra Mehta - Sunday, 13 September 2009, 11:00 AM
  Hey All...
Plz solve this question..

The cost price of a pair of shoes is increased by 18%. A trader who revised the selling price of the pair of shoes to maintain the same profit percentage noted that he got Rs. 9 more than the earlier profit by selling one pair of shoes. What was the earlier profit?

1Rs.36
2Rs.45
3Rs.50
4Rs.54
5Cannot be determined
Re: Profit and Loss, Discount
by Akash Gaurav - Thursday, 8 October 2009, 09:59 PM
  Hey Neha,
Here is your reply:
Lets assume that the CP of a pair of shoes is Rs x, the profit percentage is z% and the actual profit is Rs y.

Then, x * z/100 = y ---- (1)

After increase in CP, Cost price = x+(18*x/100) = 1.18x
Now the profit = Rs (y+9)
Then, 1.18x*z/100 = y+9 --- (2)

If you divide equation (1) and (2), x and z will get eliminated and you will be able to find the value of y which is the original profit.
Ans: Rs 50
Re: Profit and Loss, Discount
by ROHIT K - Friday, 9 October 2009, 10:57 PM
  Hi Netra,

Let the cost price of a pair of shoes be Rs. 100.
After increase of 18% the cost price becomes Rs. 118.

Now for cost price of Rs. 100 , let profit be Rs. x
Therefore, for cost price of Rs. 118 profit will be Rs. x+9

Solving we have,

(x+9)/x = 118/100=59/50

x=50

Therefore earlier profit is Rs. 50 smile

Option 3

Rohit
Re: Profit and Loss, Discount
by Vinayak Mishra - Wednesday, 21 October 2009, 12:07 PM
  Thank You,TG and Team for Refreshing P&L.
Re: Profit and Loss, Discount
by reema kharbanda - Wednesday, 18 November 2009, 12:00 AM
  hi..cud u plz explain the no.5 sum regarding faulty weights in buying and selling in more detail???
Re: Profit and Loss, Discount
by Pallav Jain - Wednesday, 18 November 2009, 12:17 AM
  hi Reema !

see what happened is he paid for 1000 gm. but actually got 1100 gm. So his profit % is 100/1000 == 10 %
now same thing happened at the time of sale he sold 1000 gm but took money for 1100 gm. same profit is 10%.

now I can explain in detail but I know you will get it easily.
Always remember that in case of Faulty balances there are 2 cases as mentioned above.
after calculation both %tages simply apply this formula

   a+b+ab/100      so here is 10+10 ( 100/100) = 21%

Hope It was understandable.

Cheers !!!!!
Pallav
Re: Profit and Loss, Discount
by reema kharbanda - Wednesday, 18 November 2009, 12:46 AM
  thnks pallav...
Re: Profit and Loss, Discount
by Pallav Jain - Wednesday, 18 November 2009, 01:33 AM
  oh need not t beee !!!!!!
Re: Profit and Loss, Discount
by Dev Raj - Sunday, 2 May 2010, 09:14 PM
  Hello TG sir,

Tonnes of Thanks for the lesson. Reading was never fun until I landed on TG.
Sir, I cud not find any lesson on Ratio and proportion.
If there is any such lesson, Then can u pls let me the link.

Proud to be a TGite.
Thanks a ton sir

Regards
Re: Profit and Loss, Discount
by afroz m - Saturday, 22 May 2010, 07:37 PM
  Hi,

Thanks a ton...
Re: Profit and Loss, Discount
by Rahul Bhat - Saturday, 14 August 2010, 11:58 AM
  Concept explained are very lucid. thanks a lot TG. 
Re: Profit and Loss, Discount
by chaitanya bollineni - Monday, 16 August 2010, 11:50 PM
  HI Sir,
I Should have posted this before...

I shall have to end here and leave the rest of it for my CBT Club students. I shall cover some problems based on this in the CBT Club this week.

 

When i click on CBT Club it goes to the home page of CBT Club..
why don't you allow CBT club Students to Directly go to forum of respective quiz which has questions related to topic which was discussed.So that we can complete that topic.

Thanku sir..

 
Re: Profit and Loss, Discount
by stg jindal - Thursday, 16 December 2010, 07:31 PM
  awesome article, the entire topic seems to be crystal clear now.
Re: Profit and Loss, Discount
by saanthwana T - Tuesday, 29 March 2011, 06:50 PM
  Hello sir,
This article on Profit and Loss is really good.

Could you please post an article on Partnerships also so that all the topics related to this are completed?

saanthwana
big grin
Re: Profit and Loss, Discount
by rahul michan - Thursday, 7 April 2011, 09:04 AM
  hello hi and thank you for your nice article ........really thanks
Re: Profit and Loss, Discount
by Parijat Singh - Thursday, 29 September 2011, 08:28 AM
  Change value = change valu 18 =9 100 =50 So ans is 50
Re: Profit and Loss, Discount
by Sirius Black - Friday, 7 October 2011, 06:22 PM
  Hi Sir..

I need to ask you one question regarding the solved example 5. When I did that question by myself.. I arrived at 10% profit. I'm mentioning my assumptions and method. I'm unable to detect the flaw. Please help.

I assumed that he bought 1100g for Rs. x.
Now he sold 1000g for Rs. x.
Had he sold all the amount, he would have got x/1000 X 1100= 1.1x

Now his profit % is = (1.1x - x)/x X 100= 10%

Please let me know if I can sell 1000g for Rs.x or not. thoughtful
Thank you.
Re: Profit and Loss, Discount
by King Casanov - Tuesday, 1 November 2011, 03:45 PM
 

@TG saar pls clear my doubt....In example of Marked price , the answer says it is 44% greater than selling price...shouldnt it be 44% greater than COST PRICE ?...I mean 144= 1.44CP
thanks...

The KING

Re: Profit and Loss, Discount
by TG Team - Tuesday, 1 November 2011, 03:49 PM
 

Yes Kingsmile

You are absolutely correct. It should be read as 44% more than cost price in place of selling price.

Kamal Lohia

Re: Profit and Loss, Discount
by Prerna Golani - Friday, 11 May 2012, 05:03 PM
  .a weighing balance shows 900 gm for 1 kg.what is net profit percentage if the trader marks-up his cost price by 20%??

solution:initially there is a loss of 10% because of defect in weighing balance.as there is a mark up of 20%,net profit (a+b+(ab/100)

=-10+20-(10*20/100)=8%

therefore there is a net profit of 8%...

how initially loss is 10%
Re: Profit and Loss, Discount
by cat me - Friday, 8 June 2012, 04:58 PM
 

Thnx TG,

These post's are a gift to all....

Re: Profit and Loss, Discount
by Rimzim Basu - Thursday, 17 January 2013, 02:37 PM
  I have always been a Total Gadha in maths but this article helped me understand a lot. Thanks TG. But, I couldn't understand Solved example-4 (oranges problem). Someone please explain the logic.
Re: Profit and Loss, Discount
by anand chokshi - Monday, 21 January 2013, 03:29 PM
  Hey please help to solve this question..

A shopkeeper bought certain no articles at 1200 rupees and sold 1/4th at loss of 10%. what should be the profit percentage of remaining stock to earn 10% profit on overall articles?
Re: Profit and Loss, Discount
by amresh kumar - Saturday, 26 January 2013, 10:54 PM
  Take 4 articles   so CP of each article = 300
   loss due to 1/4th i.e. 1 article = 30

Overall profit = 10% = 120

Let profit on each remaining 3 articles = x

120 = 1 * (-30) + 3 * x
x = 150/3 = 50

so profit on each remaining stock = (50/300)* 100 = 16.67%


However if u want the answer in one line (average)

10% = (-10% *1 + x% * 3 ) /4

x =(50/3)%

Re: Profit and Loss, Discount
by vivek 231 - Tuesday, 29 January 2013, 04:13 PM
  let us consider the no of articles as x and the price of each article will be 1200/x

now it is given that u shuld get overall profit of 10% ,which means u shuld get 1320 at the end

it is given 1/4 of the articles are sold in 10% loss
now consider the desired percentage be y

1/4*x*0.90*1200/x + 3/4*x*y*1200/x =1320

now x will get cancelled and solve the eqquation for getting the percentage req
i think the ans is 17%

hope it's right smile
Re: Profit and Loss, Discount
by Neha Parekh - Friday, 23 August 2013, 09:41 AM
  A trader buys apples at 9 for Rs. 11 and sells them at 11 for Rs. 9. Find his gain/loss %

A. 33% loss

B. 55% gain

C. 45% gain

D. 27% loss

am getting ans as A but the answer key says D.. can some1 pls verify and give the correct solution
Re: Profit and Loss, Discount
by nitin gupta - Saturday, 24 August 2013, 02:16 PM
  A should be correct answer(33% loss)
Re: Profit and Loss, Discount
by honey sweet - Tuesday, 24 September 2013, 06:23 PM
  can u explain the logic for the above question?
Re: Profit and Loss, Discount
by Shantanu Mukherjee - Monday, 30 September 2013, 05:24 PM
  Find the Cost Price of one apple which is Rs11/9 & Selling Price of one apple is Rs.9/11. Now calculate it using the formula and you can see that there will be a loss hence the answer is 33% Loss
Re: Profit and Loss, Discount
by Anuja Agarwal - Tuesday, 11 February 2014, 11:51 PM
  please do provide me with the key of these questions.
Re: Profit and Loss, Discount
by alok nirmal - Monday, 24 February 2014, 07:15 PM
  Hi TG
i wanted to discuss the 2nd example (of bicycle shopkeepers). I think the shopkeeper had a loss of 85.... cycle was of 30 + 5 he gave to the man + 50 (because the 2nd shopkeeper has taken his authentic 50 rs and have returned the counterfeit note to 1st shopkeeper, which has no value)...please reply if i am right...

By the way, great work
thumbs up
Re: Profit and Loss, Discount
by TG Team - Wednesday, 26 February 2014, 03:53 PM
 

Hi Alok smile

2nd shopkeeper has given authentic $50 change to first shopkeeper (in exchange of countefiet note) and next day he took that back. So First shopkeeper incurred a loss only by the fraudulent customer. And that amounts to cost of bicycle i.e. $30 and $5 cash, so total of $35. smile

Please think again.

Kamal Lohia

 

 

Re: Profit and Loss, Discount
by ritesh pandey - Wednesday, 12 March 2014, 08:23 PM
  A dishonest shopkeeper cheats both
his supplier
and the customer. He cheats his
supplier by
25% and his customer by 40% and
claims to sell his articles at the cost price. Find his
total
profit.
A. 186%
b.147.3%
c.132.4%
d.124%
e. 108.3%
Re: Profit and Loss, Discount
by ritesh pandey - Wednesday, 12 March 2014, 08:25 PM
  A dishonest shopkeeper cheats both
his supplier
and the customer. He cheats his
supplier by
25% and his customer by 40% and
claims to sell his articles at the cost price. Find his
total
profit.
A. 186%
b.147.3%
c.132.4%
d.124%
e. 108.3%
Re: Profit and Loss, Discount
by TG Team - Thursday, 13 March 2014, 12:04 PM
 

Hi Ritesh smile

It is (E) 108.3%

There are various ways to solve this.

See when the shopkeeper is cheating the supplier by 25%, that means he is paying for 100 articles and he is taking 125 by means of cheating (which directly means that he is making a profit of 25%, if he doesn't indulge in any further cheating while selling)

Now when he cheats the customer by 40%, that means he is charging for 100 articles but actually giving him 40% lesser i.e. 60 articles only (which means he is making a profit of 66.66% profit, if he is not indulged in any other fardulent activity).

So by using First Rule (discussed in article above) that sell all the quantity and then find the total cost price, total selling price and then profi/loss%.

Let his CP be 100, but because of cheating he purchases goods worth 125. Right?

Now while selling, he sells all goods worth 125, but he shows them as worth (5/3)*125 = 208.3

Clearly his total CP = 100, total SO = 208.3 and thus profit% = 108.3% smile

Alternately, you can make use of Successive change formula also (i.e. a% + b% successive changes yield a net change of {a + b + ab/100}%)

So here we have two successive profit percentages involved, first is 25% while buying and 66.66% while selling.

Thus net profit made = (25 + 66.66 + 25*66.66/100)% = 108.3% smile

Here is a third way too, involving equal quantity's buy and sell.

Let each article costs 1 Re and he purchases 100 articles for Rs 100. But by cheating he takes 25 more articles. So total articles in his inventory is 125.

Now while selling, he sells all the 100 articles at same as cost rice for Rs 100 but because of cheating, he gives 40% lesser articles i.e. delivers only 60 articles saving 40 for himself as more proft.

In all, what he paid he got back by making the sale. And he saved 25 + 40 = 65 articles for himself. (Mind that he sold only 60 articles).

So profit earned is = (65/60)*100 = 108.3% smile

Kamal Lohia  

 

Re: Profit and Loss, Discount
by karun dukka - Monday, 25 August 2014, 11:16 AM
  Two merchants sell, each an article for Rs.1000. If Merchant A computes his profit on cost price, while Merchant B computes his profit on selling price, they end up making profits of 25% respectively. By how much is the profit made by Merchant B greater than that of Merchant A?

  1. Rs.66.67
  2. Rs.50
  3. Rs.125
  4. Rs.200

please explain me in detail

Re: Profit and Loss, Discount
by TG Team - Tuesday, 26 August 2014, 01:35 PM
  Hi Karan smile

SP for both the merchants is 1000.

CPA = 1000/(1.25) = 1000(4/5) = 800. So ProfitA = 200.
CPB = 1000(0.75) = 1000(3/4) = 750. So ProfitB = 250.

And required difference is = 250 - 200 = 50. smile

Kamal Lohia
Re: Profit and Loss, Discount
by sumit garg - Thursday, 4 June 2015, 11:42 AM
  All doubts are cleared

Great examples(each one is handpicked)

You are the best sir

proud to be your student

smile
Re: Profit and Loss, Discount
by sakshi bajaj - Thursday, 27 August 2015, 10:24 PM
  can anyone please explain solved example no.4 in which we need to find price of oranges