मराठी

Profit or Loss as a Percentage

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Topics

  • Profit Percentage
  • Loss Percentage
  • Formula
  • Understanding Profit or Loss Percentage with Example

Formula

Profit = Selling Price - Cost Price, which means CP < SP.

Profit Percent = `"Profit"/"Cost Price" xx 100`.

Loss = Cost Price - Selling Price, which means CP > SP.

Loss Percent = `"Loss"/"Cost Price" xx 100`.

Maharashtra State Board: Class 6

Understanding Profit or Loss Percent with Example

Calculating profit or loss as a percentage, we compare it with the cost price.

  • So, if we say there is a 10% profit, it means:
    The seller made a ₹10 profit on every ₹100 of the cost price.
  • If we say there is a 10% loss, it means:
    The seller lost ₹10 on every ₹100 of the cost price.

Example:

Abbas bought vegetables worth ₹400 and sold them for ₹650. Balbir bought fruits for ₹300 and sold them for ₹500. Whose transactions were more profitable?
Solution: Abbas made a profit of ₹250, and Balbir’s profit was ₹200.
However, the cost price for each of them was different. To compare, we shall have to find out the percentages of the profits. 
Let us suppose Abbas made A% and Balbir made B% profit.
Let us find the ratios of profit to cost price, express them in two forms, obtain equations, and solve them.
`"A"/"100"` = `"250"/"400"`
`"A"/"100"` × 100 =  `"250 × 100"/"400"`
A = `"250"/"4"` = `"125"/"2"` = 62`"1"/"2"`
`"B"/"100"` = `"200"/"300"`
`"B"/"100"` × 100 = `"200 × 100"/"300"`
B = `"200"/"3"` = 66`"2"/"3"`
Therefore, Balbir's transactions were more profitable.

Example

The cost of a flower vase is Rs. 120. If the shopkeeper sells it at a loss of 10%, find the price at which it is sold.

Given: CP = Rs. 120 and Loss percent = 10.

Loss of 10% means if CP is Rs. 100, Loss is Rs. 10

Therefore,

SP would be Rs.(100 - 10) = Rs. 90

When CP is Rs. 100, SP is Rs. 90.

Therefore, if CP were Rs. 120 then
SP = `90/100 xx 120` = Rs. 108.

Given: CP = Rs. 120 and Loss percent = 10.

Loss is 10% of the cost price

= 10% of Rs. 120

= `10/100 xx 120`

= Rs. 12

Therefore,

SP = CP - Loss = Rs. 120 - Rs. 12 = Rs. 108

Example

Selling price of a toy car is Rs. 540. If the profit made by the shopkeeper is 20%, what is the cost price of this toy?

Given: SP = Rs. 540 and the Profit = 20%.

20% profit will mean if CP is Rs. 100, profit is Rs. 20.

Therefore, SP = 100 + 20 = 120

Now, when SP is Rs. 120, then CP is Rs. 100.

Therefore, when SP is Rs. 540,

Then CP = `100/120 xx 540` = Rs. 450.

Given: SP = Rs. 540 and the Profit = 20%.

Profit = 20% of CP and SP = CP + Profit

So, 540 = CP + 20% of CP

= CP + `20/100 xx "CP" = [1 + 1/5]"CP"`

= `6/5 "CP"`.

Therefore, `540 xx 5/6` = CP or Rs. 450 = CP

Example

Joseph bought a machine for Rs. 23500. He paid Rs. 1200 for transport and Rs. 300 as tax. If he sold it to a customer for Rs. 24250, what was his percent profit or loss?

Total cost price of machine = 23500 + 1200 + 300 = Rs. 25000

Selling price = Rs. 24250
Cost price greater than selling price. Therefore, loss.
Loss = Cost price - Selling price
= 25000 - 24250
= Rs. 750

Joseph suffered a loss of Rs. 750.

Supposing loss was N%,
`"N"/100 = 750/25000`

∴ `"N"/100 xx 100 = 3/100 xx 100`

∴ N = 3
∴ Loss = 3%

Example

Saritaben bought 18 chairs each at Rs. 700 and sold them all for Rs. 18900. What was the percentage of her profit or loss?

Cost price of one chair Rs. 700.
∴ Cost price of 18 chairs = 700 × 18 = Rs. 12600.

Total selling price of all chairs, Rs. 18900.
Selling price more than cost price.
Therefore,
Profit = Selling price - Cost price
= 18900 - 12600
= 6300

Saritaben made a profit of Rs. 6300.

Supposing profit was N%.

`"N"/100 = 6300/12600`

∴ `"N"/100 xx 100 = 63/126 xx 100`

∴ N = `(63 xx 100)/126`

∴ N = 50

∴ Profit was 50%.

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