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