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This Profit and Loss solved example uses the equal selling price shortcut trick: when one item gains 18% and the other loses 18%, the combined result is always a loss. The step-by-step formula is net loss percentage = (18/10)² = 3.24%. Equal gain and loss percentages do not cancel because the two cost prices are different even though the selling prices are equal. Taking the same selling price for both items and comparing their cost prices confirms the 3.24% loss.
FAQ
Common questions and clear answers for this topic.
Profit and Loss is a key Quantitative Aptitude topic in SSC CGL, IBPS Bank PO, SBI PO, CAT, and Railway exams. Basic terms: Cost Price (CP) - price at which an item is purchased. Selling Price (SP) - price at which it is sold. Profit = SP - CP (when SP > CP). Loss = CP - SP (when CP > SP). Profit% = (Profit/CP) x 100. Loss% = (Loss/CP) x 100.
Marked Price (MP) is the price printed on the item before discount. Discount = MP - SP. Discount% = (Discount/MP) x 100. SP = MP x (100-Discount%)/100. If a shopkeeper marks up by 40% and gives 20% discount: SP = CP x 1.40 x 0.80 = 1.12CP = 12% profit. Profit% and Loss% are always calculated on Cost Price unless specified otherwise.
When two successive discounts of a% and b% are given, the effective single discount = a + b - (ab/100). Example: Two discounts of 20% and 10%: Effective discount = 20 + 10 - (20x10/100) = 30 - 2 = 28%. For three discounts: apply the formula twice. Three discounts of 10% each is NOT 30% total but approximately 27.1%. These problems frequently appear in banking exams.
A dishonest dealer uses a false weight to make extra profit. If a dealer uses 800g instead of 1000g and claims to sell at cost price, profit% = (200/800) x 100 = 25%. Formula: Profit% = Error/(True weight - Error) x 100. If he also adds a markup percentage on top, calculate both profits separately and combine them.
Key Profit and Loss shortcuts: CP when profit% known: CP = SP x 100/(100+P%). CP when loss% known: CP = SP x 100/(100-L%). If article sold at 2/3 of original price gives x% loss: original price = SP x (100/(100-x)). For two articles at same SP, one at x% profit and other at x% loss: always results in x squared/100% loss overall. Memorize these for exam speed.
