Introduction
In our daily lives, we constantly engage in buying and selling. Understanding how to calculate the extra money earned (Profit) or the money lost (Loss) is essential. We also encounter Discounts in shops and Commission in service-based transactions.
Explanation Step by Step
1. Cost Price (CP) is what you pay to buy. 2. Selling Price (SP) is what you receive after selling. 3. Discount is a reduction in the Marked Price (MP). 4. Commission is a fee paid to an agent for their service.
Sub-topics
Profit and Loss
Calculating the financial outcome of a trade based on CP and SP.
Examples
Example 1 (Tricky Example)
Discount, Rebate and Commission
Reductions and service fees in commercial activities.
Examples
Example 2 (Real-life Example)
Tricks and Shortcuts
* To find the Selling Price after discount: SP = Marked Price - Discount.
* Total CP includes the buying price plus overhead expenses like repairs or transport.
Common Mistakes
* Confusing Rebate with Profit. Rebate is a form of discount given by the government or organizations.
* Calculating Profit percentage on Selling Price instead of Cost Price.
Practice Questions
Easy Questions
- If CP is 200 and SP is 250, find the profit.
- Calculate a 5% commission on a sale of 2,000. (Real-life)
- A bag marked at 500 is sold for 450. What is the discount amount? (Tricky)
Medium Questions
- A shopkeeper offers a 10% discount on a 1,200 shirt. What is the final price?
- Buying a fan for 1,000 and spending 200 on repairs, then selling it for 1,100 results in? (Tricky)
- An agent gets 500 as a 2% commission. What was the total value of the sale?
Hard Questions
- A farmer gets a 12% rebate on fertilizer worth 8,000. If he also pays 200 for transport, what is his net cost? (Real-life / Tricky)
- By selling a watch for 1,440, a man loses 10%. At what price should he sell it to gain 10%?
- A dealer buys a TV for 10,000. He marks it 20% above CP and then gives a 10% discount. Find his final profit.
Revision Summary
Profit and Loss depend on the CP and SP. Discounts are always calculated on the Marked Price. Commission is a percentage of the total transaction value. Always include extra expenses in the total CP.