Profit & Loss Formula for Cat Exam

Important Facts

Cost Price: The price, at which an article is purchased, is called its cost price, abbreviated as C.P.

Selling Price: The price, at which an article is sold, is called its selling prices, abbreviated as S.P.

Profit or Gain: If S.P. is greater than C.P., the seller is said to have a profit or gain.

Loss: If S.P. is less than C.P., the seller is said to have incurred a loss.

Formulas

1.  Profit = Selling Price - Cost Price 

2.  Loss = Cost Price - Selling Price 

3.  % profit = ___Profit       x 100

                         Cost Price

4.  % loss = ____Loss        x 100

                         Cost Price

5.  S.P. = (100 + Gain %) x C.P.
                        100

6.  S.P. = (100 - Loss %) x C.P.
                        100

7.  C.P. = _____100            x S.P.
                   (100 + Gain %)   


8.  C.P. = _____100            x S.P.
                   (100 - Loss %)  

9. If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.

10. If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.

11.When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:

Loss % =		Common Loss and Gain %		2	=		x		2
		10					10

12. If a trader professes to sell his goods at cost price, but uses false weights, then

Gain % =		Error	x 100	%
		(True Value) - (Error)