Profit & Loss
Profit and Loss is a fundamental concept in Quantitative Aptitude that deals with the financial results of business transactions. In simple terms, it helps us determine if a person made money or lost money during a trade. To understand this, we must know two basic terms: Cost Price and Selling Price. Cost Price (CP) is the total money spent to buy or manufacture an item. Selling Price (SP) is the money received from a customer when the item is sold.
Concepts (2)
This concept involves finding the difference between what you spent and what you earned. If SP > CP, it is Profit. If CP > SP, it is Loss. To find the percentage, divide the profit or loss by the CP and multiply by 100.
This concept involves finding the difference between what you spent and what you earned. If SP > CP, it is Profit. If CP > SP, it is Loss. To find the percentage, divide the profit or loss by the CP and multiply by 100. Example: If CP is ₹100 and SP is ₹120, Profit is ₹20. Profit % is (20/100) * 100 = 20%.
Marked Price (MP) is the price the seller labels on the product. Discount is the reduction offered on this MP. The final price after discount is the SP.
Marked Price (MP) is the price the seller labels on the product. Discount is the reduction offered on this MP. The final price after discount is the SP. If a retailer marks an item 80% above CP, and gives a 25% discount, the profit is calculated on the final SP relative to the original CP.
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