Profit, Loss and Discount: Selling/Cost price Profit, loss, and discount are three fundamental concepts in quantitative aptitude that measure the financial...
Profit, Loss and Discount: Selling/Cost price
Profit, loss, and discount are three fundamental concepts in quantitative aptitude that measure the financial gain or loss of an item when purchased or sold.
Profit:
When a seller makes a profit, they are receiving more money than they paid for the item.
The profit is calculated by subtracting the cost price from the selling price.
For example, if a seller purchases an item for 15, they make a profit of $5.
Loss:
When a seller loses money, they are paying more than they initially paid for the item.
The loss is calculated by subtracting the cost price from the selling price.
For example, if a seller purchases an item for 8, they lose $2.
Discount:
A discount is a reduction in the price of an item.
The discount is calculated by subtracting the discount amount from the original price.
For example, if a seller advertises an item for 14.
Relationship between Profit, Loss and Discount:
Profit = Selling price - Cost price
Loss = Cost price - Selling price
Discount = Original price - Selling price
Understanding profit, loss, and discount is crucial for evaluating the financial health of a business, negotiating prices, and making informed investment decisions