Profit and Loss

1. Cost Price (CP): The cost price is the price at which a product or service is purchased. It includes the cost of production, manufacturing, or acquiring the product.

2. Selling Price (SP): The selling price is the price at which a product or service is sold to the customers.

3. Profit (P): Profit is the amount earned when the selling price is higher than the cost price. It is calculated as SP - CP.

4. Loss (L): Loss is the deficit incurred when the selling price is lower than the cost price. It is calculated as CP - SP.

5. Marked Price (MP): The marked price is the original price of a product or service, as mentioned on the price tag or label.

6. Discount (D): A discount is a reduction in the marked price of a product or service. It is usually given to attract customers or clear off old stock.

7. Profit Percentage (P%): Profit percentage is the percentage of profit earned on the cost price. It is calculated as (Profit/CP) × 100.

8. Loss Percentage (L%): Loss percentage is the percentage of loss incurred on the cost price. It is calculated as (Loss/CP) × 100.

9. 1. A shopkeeper bought a toy for Rs. 500 and sold it for Rs. 650. What is the profit percentage? a) 15% b) 20% c) 25% d) 30%

   2. A shirt was bought for Rs. 800 and sold at a loss of 12.5%. What was the selling price? a) Rs. 680 b) Rs. 700 c) Rs. 720 d) Rs. 750

   3. A trader sold a mobile phone for Rs. 9,000 and incurred a loss of 10%. What was the cost price of the mobile phone? a) Rs. 9,500 b) Rs. 10,000 c) Rs. 10,500 d) Rs. 11,000

   4. If the cost price of an item is Rs. 200 and it is sold at a profit of 20%, what is the selling price? a) Rs. 220 b) Rs. 240 c) Rs. 250 d) Rs. 260

   5. A shopkeeper offers a discount of 20% on a pair of shoes. If the marked price is Rs. 1,500, what is the selling price after the discount? a) Rs. 1,100 b) Rs. 1,200 c) Rs. 1,300 d) Rs. 1,400

   6. A trader bought 15 pens for Rs. 750 and sold them at a profit of 30%. What was the selling price of each pen? a) Rs. 50 b) Rs. 55 c) Rs. 60 d) Rs. 65

   7. A shirt was sold for Rs. 800 at a loss of 20%. What was the cost price of the shirt? a) Rs. 1,000 b) Rs. 1,100 c) Rs. 1,200 d) Rs. 1,500

   8. A toy was bought for Rs. 200 and sold for Rs. 250. What was the percentage of profit? a) 10% b) 15% c) 20% d) 25%

   9. A trader sold a TV for Rs. 12,000 at a profit of 25%. What was the cost price of the TV? a) Rs. 9,600 b) Rs. 10,000 c) Rs. 10,800 d) Rs. 11,000

   10. A book was sold at a loss of 8%. If the selling price was Rs. 460, what was the cost price? a) Rs. 500 b) Rs. 480 c) Rs. 500 d) Rs. 520

   Note: The answers to these MCQs are as follows: 1) c, 2) c, 3) d, 4) b, 5) d, 6) b, 7) c, 8) c, 9) c, 10) b.

   1. A shopkeeper bought a mobile phone for Rs. 15,000 and sold it for Rs. 18,000. What is the profit percentage? a) 10% b) 15% c) 20% d) 25%

   Explanation: The cost price (CP) of the mobile phone is Rs. 15,000 and the selling price (SP) is Rs. 18,000. The profit is the difference between the SP and CP, which is Rs. 18,000 - Rs. 15,000 = Rs. 3,000. To find the profit percentage, we divide the profit by the CP and multiply by 100: (3000/15000) × 100 = 20%. So, the correct answer is (c) 20%.

   2. A shirt was bought for Rs. 800 and sold at a loss of 10%. What was the selling price? a) Rs. 700 b) Rs. 720 c) Rs. 750 d) Rs. 770

   Explanation: The cost price (CP) of the shirt is Rs. 800 and the loss percentage is 10%. The loss is the percentage of CP, which is 10% of Rs. 800 = Rs. 80. The selling price (SP) is the CP minus the loss, which is Rs. 800 - Rs. 80 = Rs. 720. So, the correct answer is (b) Rs. 720.

   3. A trader sold a laptop for Rs. 40,000 and incurred a loss of 20%. What was the cost price of the laptop? a) Rs. 44,000 b) Rs. 48,000 c) Rs. 50,000 d) Rs. 52,000

   Explanation: The selling price (SP) of the laptop is Rs. 40,000 and the loss percentage is 20%. The loss is the percentage of SP, which is 20% of Rs. 40,000 = Rs. 8,000. The cost price (CP) is the SP plus the loss, which is Rs. 40,000 + Rs. 8,000 = Rs. 48,000. So, the correct answer is (b) Rs. 48,000.

   4. If the cost price of an item is Rs. 250 and it is sold at a profit of 25%, what is the selling price? a) Rs. 275 b) Rs. 300 c) Rs. 312.50 d) Rs. 325

   Explanation: The cost price (CP) of the item is Rs. 250 and the profit percentage is 25%. The profit is the percentage of CP, which is 25% of Rs. 250 = Rs. 62.50. The selling price (SP) is the CP plus the profit, which is Rs. 250 + Rs. 62.50 = Rs. 312.50. So, the correct answer is (c) Rs. 312.50.

Profit and Loss Classes for Sainik School Entrance Examination