We will solve different types of problems on finding profit or loss.
We know, when Selling Price (S.P.) is greater than the Cost Price (C.P.) we have a gain (Profit) and when Cost Price (C.P.) is greater than the Selling Price (S.P.) we have a loss.
General formula to find whether there is profit or loss:
Profit or Gain = S.P. - C.P. = Selling Price - Cost Price
Loss = C.P. - S.P. = Cost Price - Selling Price
Solved examples on finding profit or loss:
1. A shopkeeper buys a football for $ 150 and sells it at $ 210. What is his profit or loss?
Cost Price of foot ball = $ 150
Selling Price of foot ball = $ 210
210 > 150
As, S.P. > C.P.
So, he makes a profit
Profit = S.P. - C.P.
= $ (210 - 150)
= $ 60.
2. A merchant bought a table fan for $ 575 and sold for $ 500. Find the loss of the merchant in the transaction?
Cost Price of the table fan = $ 575
Selling Price of the table fan = $ 500
Loss = Cost Price - Selling Price
= $ (575 - 500)
= $ 75
Therefore, loss of the merchant is $ 75.
3. A man bought 360 eggs at $ 18 per dozen. 40 egg where broken and 20 egg were rotten. What would be his profit or loss if he sells the rest at $ 20 per dozen?
As 12 things makes a dozen,
He bought = (360 ÷ 12) dozen
= 30 dozen.
His cost price = $ 18 × 30 = $ 540
He sold total number of eggs = (360 - 40 - 20) = 300
Therefore, he sold = (300 ÷ 12) dozen eggs
= 25 dozen eggs.
His selling price = $ 25 × 20
= $ 500
As 500 < 540, that is S.P. < C.P.
He suffers a loss,
His loss = C.P. - S.P.
= $ (540 - 500)
= $ 40.