Chapter 3: Profit & Loss - Exercise 3A - Solution

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Chapter 3.1: Profit & Loss
Exercise 3A

FORMULAS:

• Profit = Selling price - Cost price
• Loss = Cost Price - Selling price
• Selling Price (For Profit) = Cost Price + Profit
• Selling Price (For Loss) = Cost Price - Loss
• Cost Price (For Profit) = Selling Price - Profit
• Cost Price (For Loss) = Selling Price + Loss
• Profit % of Cost Price = ^Profit/_{Cost Price} x 100
• Profit % of Selling Price = ^Profit/_{Selling Price} x 100
• Loss % of Cost Price = ^Loss/_{Cost Price} x 100
• Loss % of Selling Price = ^Loss/_{Selling Price} x 100

 BASIC LEVEL 

1. Complete the table.

	Cost Price (PKR)	Selling Price (PKR)	Profit /Loss (PKR)	Profit/Loss As A Percentage Of The Cost Price
1.	40	45
2.	600	480
3.	88000			Profit of 4%
4.	5680			Loss of 22.5%
5.		28.14		Profit of 171/4%
6.		506.85		Loss of 7%

SOLUTION:
(a) Data:

• Cost Price = 40 PKR
• Selling Price = 45 PKR
• Profit = ? (Hint: Because selling price is greater than cost price)
• Profit% of the cost price = ?

For Profit:
Profit = Selling Price - Cost Price
⇒ Profit = 45 - 40
⇒ Profit = 5 PKR

Profit% of Cost Price

Answer: Profit is 5 PKR and Profit% of cost price is 12.5%.

(b) Data:

• Cost Price = 600 PKR
• Selling Price = 480 PKR
• Loss = ? (Hint: Because selling price is less than cost price)
• Loss% of the cost price = ?

For Loss:
Loss = Cost Price - Selling Price
⇒ Loss = 600 - 480
⇒ Loss = 120 PKR

Loss% of Cost Price

Answer: Loss is 120 PKR and Loss % of cost price is 20%.

(c) Data:

• Cost Price = 88 000 PKR
• Profit% of the cost price = 4%
• Selling Price = ?
• Profit = ?

There are Two Methods To Solve It:
METHOD 1:
For Profit:

For Selling Price:
Selling Price = Cost Pice + Profit
⇒ Selling Price = 88 000 + 3520 = 91 520 PKR

METHOD 2:
For Selling Price:
First we will find selling price on profit percentage of cost price i.e. 4%.
(Hint: We have given profit percentage of the cost price = 4%, which means if the cost price is 100 PKR than the profit is 4 PKR.)
If
⇒ Cost price = 100 PKR
⇒ Profit = 4 PKR
Then
⇒ Selling price = Cost Price + Profit
⇒ Selling Price = 100 + 4 = 104 PKR

Now We will find Selling Price, If the cost Price is 88 000 PKR, as:

For Profit:
Profit = Selling Price - Cost Price
⇒ Profit = 91520 - 88000
⇒ Profit = 3520 PKR

Answer: Profit is 3520 PKR and selling price is 91 520 PKR.

(d) Data:

• Cost Price = 5680 PKR
• Loss% of the cost price = 22.5%
• Selling Price = ?
• Loss = ?

There are Two Methods To Solve It:
METHOD 1:
For Loss:

For Selling Price:
Selling Price = Cost Pice - Loss
⇒ Selling Price = 5680 - 1278 = 4402 PKR

METHOD 2:
For Selling Price:
First we will find selling price on Loss percentage of cost price i.e. 22.5%.
(Hint: We have given loss percentage of the cost price = 22.5%, which means if the cost price is 100 PKR than the loss is 22.5 PKR.)
If
⇒ Cost price = 100 PKR
⇒ Loss = 22.5 PKR
Then
⇒ Selling price = Cost Price - loss
⇒ Selling Price = 100 + 22.5 = 77.5 PKR

Now We will find Selling Price, If the cost Price is 5680 PKR, as:

For Loss:
Loss = Cost Price - Selling Price
⇒ Loss = 5680 - 4402
⇒ Loss = 1278 PKR

Answer: Loss is 1278 PKR and selling price is 4402 PKR.

(e) Data:

• Selling Price = 28.14 PKR
• Profit% of the cost price = 17¹/₄% = 17.25%
• Cost Price = ?
• Profit = ?

For Cost Price:
First we will find cost price on profit percentage of cost price i.e. 17.25%.
(Hint: We have given profit percentage of the cost price = 17.25%, which means if the cost price is 100 PKR than the profit is 17.25 PKR.)
If
⇒ Cost price = 100 PKR
⇒ Profit = 17.25 PKR
Then
⇒ Selling price = Cost Price + Profit
⇒ Selling Price = 100 + 17.25 = 117.25 PKR

Now We will find cost Price, If the selling Price is 28.14 PKR, as:

For Profit:
Profit = Selling Price - Cost Price
⇒ Profit = 28.14 - 24
⇒ Profit = 4.14 PKR

Answer: Profit is 4.14 PKR and cost price is 24 PKR.

(f) Data:

• Selling Price = 506.85 PKR
• Loss% of the cost price = 7%
• Cost Price = ?
• Loss = ?

For Cost Price:
First we will find cost price on loss percentage of cost price i.e. 7%.
(Hint: We have given loss percentage of the cost price = 7%, which means if the cost price is 100 PKR than the loss is 7 PKR.)
If
⇒ Cost price = 100 PKR
⇒ loss = 7 PKR
Then
⇒ Selling price = Cost Price - loss
⇒ Selling Price = 100 - 7 = 93 PKR

Now We will find cost Price, If the selling Price is 506.85 PKR, as:

For Loss:
Loss = Cost Price - Selling Price
⇒ Loss = 545 - 506.85
⇒ Loss = 38.15 PKR

Answer: Loss is 38.15 PKR and cost price is 545 PKR.

	Cost Price (PKR)	Selling Price (PKR)	Profit /Loss (PKR)	Profit/Loss As A Percentage Of The Cost Price
1.	40	45	Profit = 5	Profit of 12.5%
2.	600	480	Loss = 120	Loss of 20
3.	88000	91520	Profit = 3520	Profit of 4%
4.	5680	4402	Loss = 1278	Loss of 22.5%
5.	24	28.14	Profit = 4.14	Profit of 171/4%
6.	545	506.85	Loss =38.15	Loss of 7%