One of the important roles of an organization is to ensure the overall performance based on profit as it is the only factor for organization's sustainability.so profit and loss problems have a great role in quantative aptitude.
profit loss and discount tricks
In general,profit can be defined as the financial gain and loss can be defined as the amount lost.
There are few more terms which one should learn
Cost Price(C.P): Amount incurred for purchasing/manufacturing the product.
Selling Price(S.P): Gained amount in process of selling the product.
Actual price:Same as Maximum Retail Price.
Discount: price deducted from cost price.
Profit= S.P - C.P.
Loss= C.p - S.P.
Discount= Actual price - S.P.
profit % =(profit/C.P)100
loss % =(loss/C.P)100
100S.P = (100- Loss% )C.P or (100+Profit% )*C.P
As discount is always calculated in customer's perspective ,it deals with Actual price but not C.P
Discount % = (discount/Actual price)*100.
when trader sells the items at C.P but uses false weights then
profit % =[ Error/(True value-Error)]*100
Profit loss and discount solved problems:
A seller says that he is sold an item at 10% discount and got a profit of 10 buyer claims that he have purchased the item at 90 find the profit%.
Discounted price=Actual price -Discount
90= Ap - A.P(10/100)
profit %= 12.5%
A seller buys sugar in a place where gravity is normal and sells the sugar in a place where gravity is 10% more ,find his profit %.
10% increase in gravity reflects the 10% increase in weight.
means if he buys 100gms,when he sells it will be 110gms(due to gravity)
Indirectly this is equivalent to selling same item for 10% increased price.