Profit and Loss
Profit amount=Sale price−Cost price
When the Profit amount is expressed as a percentage, the Percentage reference value is the Cost price, that is,
Profit percentage=Profit amount×100Cost price/Cost price.
When Sale price is less than the Cost price, a loss is incurred with the loss as,
Loss amount=Cost price−Sale price
When the Loss amount is expressed as a percentage, the Percentage reference value again is the Cost price, that is,
Loss percentage=Loss amount×100Cost price/Cost price.
The Discount percentage, if any, is applied as a percentage on the Percentage reference value of Marked price, to obtain the Discount amount.
The Marked price is then reduced by the Discount amount to obtain the Sale price.
These are briefly the basic concepts in the topic area of Competitive test Profit an loss. The concepts are apparently simple.
Percentage
What is percentage:
The word percent can be understood as follows:
Per cent => for every 100.
So, when percentage is calculated for any value, it means that that you calculate the value for every 100 of the reference value
Why Percentages:
Percentage is a concept evolved so that there can be a uniform platform for comparison of various things. (Since each value is taken to a common platform of 100.)
Basic tips for faster calculations:
Calculation of Percentage:
Percentage = (Value / Total value) X 100
Calculation of Value:
Value = (Percentage/100) X total value
Percent change:
A change can be of two types – an increase or a decrease.
Percentage Difference:
% Difference = (Difference between values/value compared with) X 100.
