Profit & Loss


This section is quite interesting. Concepts are simple but Questions are logical.


I bought a rare novel worth Rs. 400. After finished reading, I thought of selling it to somebody else. I scratched the sticker and then put my own sticker on it that said, “500 Rs only” so that I can make a sweet profit of 100Rs on this Novel.

PROFIT & LOSS

Profit Or Loss Keys Showing Returns For Internet Businesses

 

Now, a customer has come to me to buy this novel. But to buy it for 500Rs, he’s not ready. He wants some discount on it.

Okie, I will give you a 5% discount, I said. He calculated that 5% of 500 means 25Rs only. He rejected. Said, he want more discount.

Okie, I will give you a final 10% discount, but not more. Take it or leave it. He calculated, 10% discount on 500Rs means 50Rs discount.

He said Okie. He gave me 450 Rs and then bought this Novel.


Now, let’s answer these quick simple questions based on the above information.

 

Ques: What is the Cost price of this Novel?

Ans: 400Rs

Ques: What is the Marked Price of this Novel?

Ans: 500Rs

Ques: How much is the Markup?

Ans: Markup is the extra price which is added to the cost price. Markup = 500 – 400 = 100Rs

Ques: What is the discount % on this Novel?

Ans: 10%

Ques: What is the discount in Rs on this Novel?

Ans: 10% of 500 = 50Rs

Ques: What is the Selling Price of this Novel?

Ans: Selling price is the price at which he bought the Novel after deducting the discount from the Markup Price. SP = MP – Discount = 500-50 = 450Rs

Ques: What is the profit in Rs on this Novel?

Ans: 50Rs

Ques: What is the Profit percent?

Ans: 50Rs profit I made on 400Rs Cost Price of novel. In percentage, Profit % = [50/400]*100 = 12.5%

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