Profit and Loss Basics
A shopkeeper buys a shirt for ₹500 and sells it for ₹650. Find: 1. Profit 2. Profit Percentage
Hint: Use: Profit = Selling Price - Cost Price and Profit Percentage = (Profit / Cost Price) × 100.
Hello student, today we will understand a simple Profit and Loss question. Suppose a shopkeeper buys a shirt for ₹500 and sells it for ₹650. We need to find the profit and the profit percentage. First, let us understand the basics. The price at which an item is purchased is called the Cost Price. The price at which an item is sold is called the Selling Price. Here, the Cost Price is ₹500 and the Selling Price is ₹650. Now let us find the profit. Profit means the extra money earned. Formula: Profit = Selling Price - Cost Price So: Profit = 650 - 500 = 150 Therefore, the profit is ₹150. Now let us find the profit percentage. Formula: Profit Percentage = (Profit / Cost Price) × 100 So: Profit Percentage = (150 / 500) × 100 = 30% Therefore, the profit percentage is 30%. Always remember: When the Selling Price is greater than the Cost Price, there is a profit.