1. Profit / Loss % word problem

2. Recap on Profit and Loss
Profit or Gain = Selling price – Cost price
Loss = Cost price – Selling price

3. Application of Overhead Expenses
Sometimes when an article is bought or sold, some additional expenses occur
while buying or before selling it. These expenses have to be included in the cost
price. These expenses are referred to as Overhead Expenses. These may include
expenses like amount spent on repairs, labour charges, transportation, etc.,
Cost Price = Real Cost price + Overhead Expenses
Example :- Anbarasan purchased a house for Rs 17,75,000 and spent Rs 1,25,000
on its interior decoration.
Solution
Given:- Real cost price= Rs 17,75,000 ; Interior decoration expense = Rs 1,25,000
To Find:- Total cost of the house
Cost Price = Real Cost price + Overhead Expenses
= 17,75, ,25,000 = 19,00,000
Ans:- Cost of the house = Rs 19,00,000

4. Given: cost price = Rs 12000, selling price = 15000
Example 1: A dealer bought a television set for Rs.12,000 and sold it for Rs.15,000. What is the profit or loss percentage?
Solution
Given: cost price = Rs 12000, selling price = 15000
To Find: profit or loss percentage %
Since selling price > cost price there is profit
Profit = selling price – cost price
= – 12000
=3000 25 4
Profit%= 25
Ans: Profit percentage = 25

5. Example 2: Vinoth purchased a house for Rs 27, 50,000
Example 2: Vinoth purchased a house for Rs 27, 50,000. He spent Rs 2,50,000 on repairs
and painting. If he sells the house for Rs 33,00,000 what is his profit or loss % ?
Solution
Given: Purchase price : Rs 27,50,000, Repair Cost: Rs 2,50,000 ,
Selling price(SP)= Rs 33,00,000
To Find:- Profit or loss %
Cost price(CP)= Purchase price + Repair Cost
=27,50, ,50,000
∴Cost price(CP)= Rs 30,00,000
Since SP>CP there is profit, Profit=SP-CP= 30,00, ,00,000 = Rs 3,00,000

6. Ans: Profit percentage = 50
Example 3: A whole sale dealer bought 25 water bottles for Rs He sold each
bottle for Rs.15. what is the profit or loss percentage.
Solution
Given: 25 water bottles costs Rs. 250, selling price of each bottle Rs 15
To Find: profit or loss percentage.
Selling price of 1 bottle = 15
Selling price of 25 bottle = 25 x 15 = 375
Since selling price of 25 bottles > cost price of 25 bottles there is profit
Profit = selling price – cost price
= =125 50 2
Profit%= 50
Ans: Profit percentage = 50

7. Example 4: A shop keeper bought 10 bananas for Rs 100
Example 4: A shop keeper bought 10 bananas for Rs bananas were rotten. He
sold the remaining bananas at the rate of Rs 11 per banana. Find his gain or loss %
Solution
Given: Bananas purchased=10 bananas ,Cost price(CP)= Rs 100,Bananas rotten=2, Selling price per banana=Rs 11.
To Find: gain or loss %
Bananas left =total banana purchased – bananas rotten =10-2=8
Selling price(SP)=Bananas left * Selling price per banana
=8*11=88
Since SP<CP there Loss, Loss=CP-SP=100-88=12

8. Try these
1. Mohan sold his old bike for Rs He has purchased it for
Rs and spent Rs 4000 on repairs. Find profit/loss %
A shop keeper purchased 100 ball pens for Rs 250. He sold
each pen for. Find the profit percent.