Profit and loss is one of the most frequently asked topics from percentages in the CAT exam. With proper practice and clear understanding of its concepts, one can easily increase his/her CAT exam score as it is also one of the easiest topics from Quants. If you are preparing for CAT exam then you should be well aware of the concepts discussed below

Selling Price – The price at which the commodity is sold to its buyer

Cost Price – The actual price of the commodity

If SP > CP then the seller will be in profit

If SP < CP then the seller will be in loss

If SP = CP then the seller will be in a state of no profit no loss

Profit = Selling Price – Cost Price

And consequently, Loss = Cost Price – Selling Price

$latex \displaystyle \text{Profit }\%\text{ = } \frac{{\text{Profit}}}{{\text{Cost Price}}}\times 100$

OR

$latex \displaystyle \text{Profit }\%\text{ = }\frac{{\text{SP – CP}}}{{\text{CP}}}\times 100$

AND

$latex \displaystyle Loss\%=\frac{{Loss}}{{\text{Cost Price}}}\times 100$

OR

$latex \displaystyle \text{Loss }\%\text{ = }\frac{{\text{SP – CP}}}{{\text{CP}}}\times 100$

Formula for loss percent remains the same as profit percent, but the calculation will give a negative value denoting the loss occurred.

One other factor which is important here is **Discount**

Discount = **Marked Price** – Selling Price

Marked Price = Marked Price is the price that is offered to the customer before the discount

Here are some solved examples for your practice –

Example 1:

Example 2:

Example 3:

If you found this blog an interesting read, then do check out our other blogs.

You can also visit our website www.gofodu.com for free mocks, sectional tests and video lectures.