- LPU MCA Semester 1
- PEA515
- Unit 2
PEA515 · Unit 2: Percentage and profit and loss
Cost price, selling price, marked price and profit or loss percentage
30 practice questions · in the MTE and ETE syllabus
Key points
- Profit and loss percentages use cost price as the base
- Discount is on the marked price
- SP = CP x (100 + p)/100
- Convert word problems to cost 100 first
Profit = SP - CP and profit% = profit / CP x 100; for a loss, loss = CP - SP and loss% = loss / CP x 100. Both percentages use the cost price as the base.
Formulas: SP = CP x (100 + p)/100 for a profit of p%, and SP = CP x (100 - l)/100 for a loss of l%.
Marked price (MP) is the label price. Discount is given on the marked price: SP = MP x (100 - d)/100. A trader who marks goods up m% over cost and gives d% discount ends with SP = CP x (100 + m)(100 - d)/10000.
Example: CP 800, sold at a profit of 15% means SP = 800 x 1.15 = 920.
Exam trap: computing profit percent on the selling price, or the discount on the cost price.
Try two questions
After a loss of 15 percent, a trader gets 340 rupees for a sofa. Find the cost price.
- 391
- 400
- 355
- 295.65
Show the answer
B. Worked answer: CP = SP x 100 / 85 = 400.
Why not A: Applies the percentage to the selling price in the wrong direction.
Why not C: Subtracts the percentage as an amount.
Why not D: Uses the wrong factor for the gain or loss.
A mobile phone bought at 2400 rupees fetches 3600 rupees. Compute the profit percent.
- 33.33%
- 1200%
- 50%
- 0.5%
Show the answer
C. Profit = 1200; divide by cost 2400 and multiply by 100: 50%.
Why not A: Uses the selling price as the base.
Why not B: Reports the amount instead of the percentage.
Why not D: Forgets to multiply by 100.