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SSC CPO Basic Profit & Loss

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This page covers SSC CPO Basic Profit & Loss with complete concept notes, 17 graded practice MCQs, key points and exam-specific tips. Free to study.

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Concept Notes

Basic Profit & Loss— Rules & Concept

Core ConceptRead this first — the foundation of the topic
Core Concept

When you buy something for Rs. 100 and sell it for Rs. 120, you make Rs. 20 profit. If you sell it for Rs. 80, you face Rs. 20 loss. This simple idea forms the basis of all profit-loss calculations

Key Terms

Cost Price (CP) = Price at which goods are purchased. Selling Price (SP) = Price at which goods are sold. Profit = SP - CP (when SP > CP). Loss = CP - SP (when CP > SP).

Formula BlockMemorise — at least one formula appears in every paper
Profit% = (Profit/CP) × 100. Loss% = (Loss/CP) × 100. SP = CP + Profit = CP(100 + Profit%)/100. SP = CP - Loss = CP(100 - Loss%)/100. CP = SP × 100/(100 + Profit%). CP = SP × 100/(100 - Loss%).
Exam PatternsWhat examiners ask — read before attempting PYQs

SSC CGL asks 2-3 direct profit-loss questions every year. Common question types include finding CP when SP and profit% are given, calculating overall profit/loss in multiple transactions, and finding marked price after discount. Powerful Shortcut #1: When profit% = loss%, overall result is always loss. Loss% = (Profit%)²/100. Example: 20% profit on one item, 20% loss on another = Overall loss of 4%.

Worked ExampleSolve this step-by-step before moving on
1
Step 1

Identify CP = Rs. 800, SP = Rs. 920

2
Step 2

Calculate Profit = SP - CP = 920 - 800 = Rs. 120

3
Step 3

Apply formula Profit% = (Profit/CP) × 100 = (120/800) × 100 = 15% Answer: 15% profit Shortcut #2: Quick CP calculation when SP and profit% known. Use: CP = SP/(1 + Profit%/100). For 25% profit, divide SP by 1.25. For 20% loss, divide SP by 0.8. Worked Example 2: An article is sold for Rs. 1440 at 20% loss. Find the cost price.

1
Step 1

SP = Rs. 1440, Loss% = 20%

2
Step 2

Use shortcut CP = SP/(1 - Loss%/100) = SP/0.8

3
Step 3

CP = 1440/0.8 = Rs. 1800 Verification: 20% of 1800 = 360, so SP = 1800 - 360 = 1440 ✓ Answer: Rs. 1800 Shortcut #3: For successive transactions, multiply factors. 10% profit followed by 20% loss = 1.1 × 0.8 = 0.88, meaning 12% overall loss. Most Common Trap: Students calculate percentage on Selling Price instead of Cost Price. Remember: Profit% and Loss% are ALWAYS calculated on Cost Price, never on Selling Price. This mistake costs at least 1-2 marks in every exam. Another frequent error involves sign confusion. When CP > SP, it's a loss situation. When SP > CP, it's profit. Always check this relationship before applying formulas. Exam Strategy: Start with identifying what's given and what's asked. Write down CP, SP clearly. Apply the basic formula first, then use shortcuts for speed. Double-check by working backwards - if you found CP, calculate SP using the given profit% to verify your answer.

Key Points to Remember

  • Profit occurs when Selling Price > Cost Price, Loss occurs when Cost Price > Selling Price
  • Profit% and Loss% are always calculated on Cost Price, never on Selling Price
  • Quick formula: SP = CP × (100 ± gain%)/100 where + for profit, - for loss
  • Shortcut: When profit% equals loss% in two transactions, overall result is always loss
  • CP calculation trick: CP = SP/(1 + profit%/100) or CP = SP/(1 - loss%/100)
  • For successive discounts or profits, multiply the factors: (1±%/100)
  • Break-even point means SP = CP, so profit = 0 and loss = 0
  • Cost Price includes all expenses like transport, taxes, and overhead costs
  • Marked Price is different from Selling Price when discount is given
  • Overall loss% in equal profit-loss case = (profit%)²/100

Exam-Specific Tips

  • When profit% = loss% = x%, then overall loss% = x²/100
  • If an article is sold at cost price after giving x% discount, then markup% = x/(100-x) × 100
  • For 2 articles with equal CP, one sold at x% profit and other at x% loss, overall loss = 2x²/(100)²
  • When SP of x articles = CP of y articles, profit% = (y-x)/x × 100
  • If CP of A is x% more than CP of B, then CP of B is x/(100+x) × 100% less than A
  • Selling price formula: SP = MP × (100-discount%)/100 where MP is Marked Price
  • For successive profits of a% and b%, overall profit% = a + b + ab/100
  • Break-even occurs when SP = CP, meaning profit percentage = 0%
Practice MCQs

Basic Profit & Loss — Practice Questions

17graded MCQs · easy to hard · full solution & trap analysis

All MCQs →
Practice 1easy

A retailer buys a watch for ₹600 and wants to make a profit of 25%. At what price should he sell the watch?

Practice 2easy

A shopkeeper buys a shirt for ₹400 and sells it for ₹520. What is his profit percentage?

Practice 3easy

A merchant sells a book at a loss of 15%. If the cost price is ₹800, what is the selling price?

Practice 4easy

If a vendor buys oranges at ₹5 per orange and sells them at ₹7 per orange, what is the profit on each orange?

Practice 5easy

A trader buys 10 pens for ₹100 and sells them at ₹15 per pen. What is his total profit?

Practice 6easy

A shopkeeper marks an item at ₹1000 and gives a discount of 10%. What is the selling price?

Practice 7medium

A merchant sells two items. On the first item, he makes a profit of 25%, and on the second item, he makes a loss of 25%. If the cost price of each item is ₹400, what is his overall profit or loss percentage?

Practice 8medium

A shopkeeper buys a watch for ₹800 and marks it at 60% above the cost price. He then offers a discount of 20% on the marked price. What is his profit percentage?

Practice 9medium

A trader buys 120 kg of rice at ₹30 per kg. He sells 80 kg at ₹40 per kg and the remaining at ₹35 per kg. What is his profit percentage?

Practice 10medium

A book is sold for ₹264 at a profit of 10%. If it were sold for ₹308, what would be the profit percentage?

Practice 11medium

A retailer marks up goods by 50% above cost price. During a sale, he offers a discount of 30% on the marked price. Later, he realizes he made an error and sells the remaining stock at a discount of only 10% on the marked price. What is the difference in profit percentage between the two selling scenarios?

Practice 12medium

A vendor buys oranges at ₹5 per dozen. He sells them at ₹0.50 per orange. What is his profit percentage?

Practice 13hard

A shopkeeper marks goods at 80% above cost price. He offers a discount of 25% on the marked price. If the cost price of an item is ₹400, what is his profit percentage?

Practice 14hard

A trader buys goods at ₹50 per unit and sells them at ₹75 per unit. However, he uses a faulty weight machine that shows 1000 grams when the actual weight is 1200 grams. What is his actual profit percentage?

Practice 15hard

A retailer buys 100 items at ₹10 each. He sells 60 items at ₹18 each and the remaining 40 items at ₹12 each. What is his overall profit percentage?

Practice 16hard

A shopkeeper marks an item at ₹2000. He gives a discount of 10% to the first customer, and the customer pays ₹1800. The shopkeeper then realizes he made an error in marking. If he wants to make a 20% profit on the cost price, what should be the cost price of the item?

Practice 17hard

A merchant sells two items. On item A, he makes a profit of 25%, and on item B, he makes a loss of 20%. If the cost price of item A is ₹800 and the cost price of item B is ₹600, what is his overall profit or loss percentage?

60-Second Revision — Basic Profit & Loss

  • Remember: Profit% = (SP-CP)/CP × 100, always on cost price base
  • Formula: CP = SP/(1 ± gain%/100) for quick reverse calculations
  • Trap: Never calculate profit percentage on selling price
  • Shortcut: Equal profit-loss case always gives overall loss = (%)²/100
  • Quick check: SP > CP means profit, CP > SP means loss
  • Pattern: Successive changes multiply as (1±%/100) factors
  • Memory aid: Cost price is the denominator in all percentage calculations
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