A Shopkeeper Sold an Article for Rs. 2500. If the Cost Price of the Article is 2000, Find the Profit Percent
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Updated Jun 08, 2024
A Shopkeeper Sold an Article for Rs. 2500. If the Cost Price of the Article is 2000, Find the Profit Percent
To find the profit percent made by the shopkeeper on selling an article, you need to know the cost price (CP) and the selling price (SP) of the article. The formula to calculate the profit percent is
Profit Percent = (Profit/Cost Price)×100
Calculate the Profit:
Cost Price (CP) = Rs. 2000
Selling Price (SP) = Rs. 2500
Profit = Selling Price − Cost Price
Profit = 2500 − 2000 = Rs.500
Calculate the Profit Percent:
Profit Percent = (Profit/Cost Price)×100
Profit Percent = (500/2000)×100
Profit Percent = 25%
Profit and Loss Concept
Profit and loss are fundamental concepts in business and economics that help in understanding the financial outcomes of buying and selling goods and services. These concepts are essential for evaluating the performance of businesses, making financial decisions, and setting prices for products.
Profit occurs when the selling price (SP) of an article is higher than its cost price (CP). It represents the financial gain made from the transaction. On the other hand, loss happens when the selling price is lower than the cost price, indicating a financial deficit from the sale.
Rules for Calculating Profit and Loss
Check below and learn the general rules for calculating profit and loss.
- Determine the difference between the selling price and the cost price.
- If the selling price is greater than the cost price, it results in profit.
- If the selling price is less than the cost price, it results in loss.
Determine Profit Percent:
- Profit percent is calculated by dividing the profit by the cost price and then multiplying by 100.
- It provides a clear percentage representation of the profit made.
Determine Loss Percent:
- Loss percent is calculated by dividing the loss by the cost price and then multiplying by 100.
- It provides a clear percentage representation of the loss incurred.
Adjusting Prices:
- Businesses often adjust their selling prices based on the desired profit margins or to minimize losses.
- Understanding profit and loss helps in setting competitive prices while ensuring financial viability.
