EXAMPLE PROBLEMS ON PROFIT AND LOSS

Example 1 :

A shop bought 80 laptops at $4000 each. It then sold 50 of them at a 20% profit in the first month. In the second month, the remaining laptops were sold at 75% of the first month's selling price. How much profit was made altogether ?

Solution :

Selling price of each laptop sold in the first month  =  120% of 4000

=  1.2(4000)

=  4800

Cost price of 50 laptops at 4000 each :

  =  50(4000)

=  200000

Selling price of 50 laptops at 4800 each :

  =  50(4800)

=  240000

Profit in the first month  =  240000 - 200000

=  40000

Remaining laptops  =  80 - 50  =  30

Selling price of each laptop in the second month  =  75% of selling price of first month

=  75% of 4800

  =  3600

Cost price of 30 laptops  =  30(4000)

  = 120000

Selling price of 30 laptops  =  30(3600)

=  108000

Loss in the second month  =  120000 - 108000

=  12000

Profit earned altogether  =  40000 - 12000

=  28000

Example 2 :

A product was marked at 20% above the cost price. It was eventually sold at 80% of the selling price. The loss was $40. What was the cost price of the product ?

Solution :

Let x be the cost price

Marked price  =  120% of x

Selling price  =  80% of 120% of x

  =  0.8 (1.2x)

  =  0.96x

Loss  =  Cost price - Selling price

x - 0.96x  =  40

0.04x  =  40

x  =  40/0.04

x  =  1000

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