The Satisfaction Academy

Profit and loss calculations are extensions of percentage only with a few twists thrown in because of play of words. In standard competitive 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: 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 & LOSS SHORTCUTS FOR QUANTITATIVE APTITUDE 1. Profit = Selling Price - Cost price 2. Selling Price = Cost Price + Profit 3. Cost Price = Selling Price - Profit 4. Loss = Cost Price - Selling Price 5. Selling Price = Cost Price - Loss 6.Cost price = Selling Price + Loss 7. Percentage profit / loss is always calculated on CP unless otherwise stated. 8. Profit Percentage = (Profit x 100) / CP 9. Loss Percentage = (Loss x CP) / CP 10. Selling Price = {[(100+ Gain %) x CP] / 100} 11. Selling Price = {[100- Loss %) x CP] /100} 12.Cost Price = {(100 x SP) / (100+ Gain %)} ________________________________________ : Cost price of the chair = [ (300 x 100) / (100 + 20) ] = 30000/120 = Rs. 250. 13.Cost Price = {(100 x SP) / (100 - Loss %)} 14. If a man buys 'p' articles for 'a' rupees and sells 'q' articles for 'b' rupees. Then, The % profit or loss = (p x b) - (q x a) / (a x q). Note: If the Sign is +ve...