Profit is the amount of money that a business earns after deducting all its expenses.
Loss is the amount of money that a business loses when its expenses exceed its earnings.
Discount is a reduction in the price of an item. It’s often used as an incentive to encourage customers to buy more of a product or to make a purchase at a particular time.
Profit, Loss, and Discount
Formulae
Profit formula:
Profit = Selling price – Cost price
Profit Percentage formula:
Profit percentage = (Profit / Cost price) x 100%
Cost price
Price at which the product was purchased
Selling price
Price at which the product was sold
Loss formula:
Loss = Cost price – Selling price
Loss Percentage formula:
Loss percentage = (Loss / Cost price) x 100%
Discount formula:
Discount = Original price x Discount rate
Discounted price = Original price – Discount
Sale price
Sale Price = Original Price – (Discount Rate x Original Price)
Original Price is the price before the discount.
Discount Rate is the percentage discount.
Cost Price
Cost Price = Selling Price / (1 + Profit Margin)
Selling Price is the sale price after the discount.
Profit Margin is the percentage profit margin.
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Step by Step Solutions to Sale Price and Cost Price Problems
Questions on Profit and Profit Percentage
Question 1:
If the cost price of a product is $50 and it is sold for $70, the profit and profit percentage would be:
Solution:
Profit = Selling price – Cost price
Profit = $70 – $50 = $20
Now calculate profit percentage
Profit percentage = (Profit / Cost price) x 100%
Profit percentage = ($20 / $50) x 100% = 40%
The profit percentage is 40%
Requested by: Ilyas
Question 2:
A toy store sells a toy for $12 that cost them $8. What is the profit percentage?
Solution:
Profit = Selling price – Cost price
Profit = $12 – $8 = $4
Profit percentage = (Profit / Cost price) x 100%
Profit percentage = ($4 / $8) x 100% = 50%
The profit percentage is 50%
Requested by: Ilyas
Question 3:
A company sells a product for $35 that cost them $30. What is the profit percentage?
Solution:
Profit = Selling price – Cost price
Profit = $35 – $30 = $5
Profit percentage = (Profit / Cost price) x 100%
Profit percentage = ($5 / $30) x 100% = 16.67%
The profit percentage is 16.67%.
Requested by: Ali Akbar
Question 4:
A shopkeeper sells a shirt for $50 that cost him $40. What is the profit percentage?
Solution:
Profit = Selling price – Cost price
Profit = $50 – $40 = $10
Profit percentage = (Profit / Cost price) x 100%
Profit percentage = ($10 / $40) x 100% = 25%
The profit percentage is 25%.
Requested by: Faizan
Question 5:
A car dealership sells a car for $20,000 that cost them $18,000. What is the profit percentage?
Solution:
Profit = Selling price – Cost price
Profit = $20,000 – $18,000 = $2,000
Profit percentage = (Profit / Cost price) x 100%
Profit percentage = ($2,000 / $18,000) x 100% = 11.11%
The profit percentage is 11.11%.
Requested by: Faizan
Question 6:
A bakery sells a cake for $40 that cost them $30. What is the profit percentage?
Solution:
Profit = Selling price – Cost price
Profit = $40 – $30 = $10
Profit percentage = (Profit / Cost price) x 100%
Profit percentage = ($10 / $30) x 100% = 33.33%
The profit percentage is 33.33%.
Requested by: Kareem
Questions on Loss and Loss Percentage
Question 1:
A shopkeeper bought a book for $15 and sold it for $10. What is the loss percentage?
Solution:
Loss = Cost price – Selling price = $15 – $10 = $5
Loss percentage = (Loss / Cost price) x 100% = ($5 / $15) x 100% = 33.33%
The loss percentage is 33.33%.
Requested by: Enaam
Question 2:
If the cost price of a product is $100 and it is sold for $80, the loss and loss percentage would be:
Loss = Cost price – Selling price
Loss = $100 – $80 = $20
Now calculate the loss percentage
Loss percentage = (Loss / Cost price) x 100%
Loss percentage = = ($20 / $100) x 100% = 20%
The loss percentage is 20%.
Requested by: Raheel
Question 3:
A bookshop owner bought a book for $50 and sold it for $40. What is the loss percentage?
Solution:
Cost price of the book = $50
Selling price of the book = $40
Loss = Cost price – Selling price
Loss = $50 – $40 = $10
Loss percentage = (Loss/Cost price) x 100%
Loss percentage = (10/50) x 100% = 20%
The loss percentage is 20%.
Requested by: Ismail
Question 4:
A store owner purchased 50 chairs for $400 each. However, due to some damage, he had to sell them at $300 each. What is the total loss incurred by the store owner?
Solution:
Cost price of 50 chairs = 50 x $400 = $20,000
Selling price of 50 chairs = 50 x $300 = $15,000
Loss = Cost price – Selling price
Loss = $20,000 – $15,000 = $5,000
The total loss incurred by the store owner is $5,000.
Requested by: Ahsan
Question 5:
A manufacturer sold a product for $240 and made a loss of 20%. What was the cost price of the product?
Solution:
Let the cost price of the product be ‘C’
Selling price of the product = $240
Loss percentage = 20%
Loss = (Loss percentage/100) x Cost price
Loss = (20/100) x C = 0.2C
Selling price = Cost price – Loss
$240 = C – 0.2C
$240 = 0.8C
C = $300
The cost price of the product was $300.
Requested by: Laiba
Question 6:
A merchant buys an item for $80 and sells it for $64. What is the loss percentage?
Solution:
Cost price of the item = $80
Selling price of the item = $64
Loss = Cost price – Selling price
Loss = $80 – $64 = $16
Loss percentage = (Loss/Cost price) x 100%
Loss = (16/80) x 100% = 20%
the loss percentage is 20%.
Requested by: Ismail
Question 7:
A factory produces 5000 pens at a cost of $10 per pen. Due to a manufacturing defect, it had to sell them for $8 per pen. What is the percentage loss?
Solution:
Cost price of 5000 pens = 5000 x $10 = $50,000
Selling price of 5000 pens = 5000 x $8 = $40,000
Loss = Cost price – Selling price
Loss = $50,000 – $40,000 = $10,000
Loss percentage = (Loss/Cost price) x 100%
Loss percentage = (10,000/50,000) x 100%= 20%
the percentage loss is 20%.
Requested by: Ismail
Question 8:
A shopkeeper sold an item for $80 and suffered a loss of 25%. What was the cost price of the item?
Solution:
Let the cost price of the item be ‘C’
Selling price of the item = $80
Loss percentage = 25%
Loss = (Loss percentage/100) x Cost price
Loss = (25/100) x C = 0.25C
Selling price = Cost price – Loss
Selling price = $80 = C – 0.25C
$80 = 0.75C
C = $106.67
The cost price of the item was $106.67.
Requested by: Ali Asghar
Questions on Discount and Discount Percentage
Question 1:
if a product originally costs $100 and is being offered at a 20% discount, the discounted price would be:
Discount = Original price x Discount rate
Discounted price = Original price – Discount
Discount = $100 x 0.20 = $20
Discounted price = $100 – $20 = $80
Requested by: Junaid
Question 2:
A shopkeeper sells an item at a discount of 20%. If the selling price of the item is $80, what is the original price of the item?
Solution:
Let the original price of the item be ‘P’
Discount percentage = 20%
Discount = (Discount percentage/100) x Original price
Discount = (20/100) x P = 0.2P
Selling price = Original price – Discount
$80 = P – 0.2P
$80 = 0.8P
P = $100
The original price of the item was $100.
Requested by: Kantesh Kumar
Question 3:
A store offers a discount of 15% on all items. If the original price of a product is $200, what is the selling price after the discount?
Solution:
Original price of the product = $200
Discount percentage = 15%
Discount = (Discount percentage/100) x Original price
Discount = (15/100) x $200 = $30
Selling price = Original price – Discount
Selling price = $200 – $30 = $170
The selling price after the discount is $170.
Requested by: Jamal
Question 4:
A company offers a discount of 25% on its products. If the selling price of a product after the discount is $120, what is the original price of the product?
Solution:
Let the original price of the product be ‘P’
Discount percentage = 25%
Discount = (Discount percentage/100) x Original price
Discount= (25/100) x P = 0.25P
Selling price = Original price – Discount
$120 = P – 0.25P
$120 = 0.75P
P = $160
The original price of the product was $160.
Requested by: Bilawal
Question 5:
A store offers a discount of 10% on all items. If the original price of a product is $50, what is the selling price after the discount?
Solution:
Original price of the product = $50
Discount percentage = 10%
Discount = (Discount percentage/100) x Original price
Discount = (10/100) x $50 = $5
Selling price = Original price – Discount
Selling price = $50 – $5 = $45
The selling price after the discount is $45.
Requested by: Farid
Question 6:
A company offers a discount of 30% on its products. If the original price of a product is $120, what is the selling price after the discount?
Solution:
Original price of the product = $120
Discount percentage = 30%
Discount = (Discount percentage/100) x Original price
Discount = (30/100) x $120 = $36
Selling price = Original price – Discount
Selling price = $120 – $36 = $84
The selling price after the discount is $84.
Requested by: Farid