Page 179 - Start Up Mathematics_8 (Non CCE)

12 Profit, Loss, Discount, Tax

You must have often seen people asking for discounts from shopkeepers. On some products, the shopkeepers
willingly give a discount while on some they completely refuse. Let us see the factors and terms which effect
the cost of an article and the discount given on it.
Cost Price (C.P.): The price/amount paid to buy an article is called its cost price (C.P.).
Overhead Expenses: The expenses incurred in packing, cartage, taxes, labour charges, etc. are called overhead
expenses. These are normally included in the cost price. If not, they are added to the cost price.
Effective C.P. = C.P. + Overhead expenses
Selling Price (S.P.): The price/amount at which an article is sold is
called its selling price (S.P.). Remember
Profit: The gain made if the S.P. is more than the C.P. is called profit. For profit/gain to happen,
Profit = S.P. – C.P. S.P. > C.P.

Profit Percent: The profit percent is the profit made on the C.P., if the
C.P. is ` 100.
+
Profit 1 Ê 00 Profit% ˆ 100 S.P.¥
Profit% = ¥ 100 S.P. = Á ˜ ¥ C.P. C.P. =
C.P. Ë 100 ¯ (100 + Profit%)
Loss: If the S.P. of an article is less than its C.P., then the difference
between the C.P. and the S.P. is called loss. Remember

Loss = C.P. – S.P. For loss to happen,
Loss Percent: The loss percent is the loss made on the C.P., if the C.P. S.P. < C.P.
is ` 100.

Loss Ê 100 - Loss% ˆ 100 ¥S.P.
Loss% = ¥100 S.P. = Á ˜ ¥ C.P. C.P. =
C.P. Ë 100 ¯ ( 100 - Loss%)
Example 1: Kishore bought a CD player for ` 3,500. He sold it for` 3,080. Find his loss percent.
Solution: C.P. of the CD player = ` 3,500

S.P. of the CD player = ` 3,080
Since C.P. > S.P., there is a loss.
Loss = C.P. – S.P. = ` (3,500 – 3,080) = ` 420

ˆ
ˆ
Loss% = Ê Á Ë Loss ¥100 % = Ê 420 ¥100 % = 12%
˜
˜
Á
¯
¯
C.P.
Ë 3 500,
Hence, Kishore sold the CD player at a loss of 12%.
Example 2: Sangeeta bought a computer for ` 25,650. Due to some defect in it, she had to pay ` 1,350
for repair. Then she sold it for ` 28,700. Find her gain or loss percent.
Solution: C.P. of the computer = ` 25,650
Amount spent on its repair = ` 1,350
\ Total investment (new C.P.) = ` (25,650 + 1,350) = ` 27,000