Profit and Loss

Profit and Loss Data Sufficiency problems test your ability to determine if given statements provide enough information to find cost price, selling price, profit percentage, loss percentage, or discount. You must assess sufficiency using profit/loss formulas and discount relationships.

10Worksheets
200+Practice Questions
IntermediateDifficulty
2-3 hoursHours to Master

Introduction to Profit and Loss

Profit and Loss Data Sufficiency problems test your ability to determine if given statements provide enough information to find cost price, selling price, profit percentage, loss percentage, or discount. You must assess sufficiency using profit/loss formulas and discount relationships.

Prerequisites

Profit = SP - CP, Loss = CP - SP Profit% = (Profit/CP) × 100% Loss% = (Loss/CP) × 100% Discount = MP - SP, Discount% = (Discount/MP) × 100%
Why This Matters: Profit and Loss problems appear in 1-2 questions in Banking PO and SSC CGL exams. They test business math and sufficiency reasoning.

How to Solve Profit and Loss Problems

1

Step 1: Identify what is being asked (CP, SP, profit%, loss%, discount%)

2

Step 2: Translate each statement into profit/loss equations

3

Step 3: Check if Statement (1) alone gives a unique answer

4

Step 4: Check if Statement (2) alone gives a unique answer

5

Step 5: Combine statements if needed

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Step 6: Remember that profit% is always calculated on CP, discount% on MP

7

Step 7: Select the appropriate DS answer choice

Pro Strategy: Any statement that gives SP and profit% (or loss%) is sufficient to find CP. Any statement that gives two different SP scenarios can be used to solve for CP by equating.

Example Problem

Example: What is the cost price of the article? Statement (1): Selling price is Rs. 1200 and profit is 20%. Statement (2): If sold at Rs. 900, the loss would be 10%. Solution: Step 1: Question asks for cost price Step 2: Statement (1): CP = 1200/1.2 = Rs. 1000 → SUFFICIENT alone Step 3: Statement (2): CP = 900/0.9 = Rs. 1000 → SUFFICIENT alone Answer: Each statement alone is sufficient

Pro Tips & Tricks

  • SP + Profit% → CP = SP × 100/(100 + P%)
  • SP + Loss% → CP = SP × 100/(100 - L%)
  • MP + Discount% → SP = MP × (100 - D%)/100
  • Two different SP scenarios for same CP → can find CP by equating expressions
  • Profit% and Loss% on same CP with different SPs → can find CP
  • If only percentages given (no absolute SP), can find ratio but not absolute CP

Shortcut Methods to Solve Faster

CP = SP × 100/(100 + P%)
CP = SP × 100/(100 - L%)
SP = CP × (100 + P%)/100
SP = CP × (100 - L%)/100
SP = MP × (100 - D%)/100

Common Mistakes to Avoid

Confusing profit% on CP with markup% on CP (they are the same, but discount is on MP)
Using profit% formula incorrectly (forgetting to divide by 100)
Assuming percentage alone (without absolute SP) is sufficient for CP
Confusing profit% with profit amount

Exam Importance

Profit and Loss is an important topic for various competitive exams. Here's how frequently it appears:

CAT
1-2 questions
GMAT
1-2 questions
BANKING PO
2-3 questions
SSC CGL
2-3 questions
INSURANCE
2-3 questions

Ready to Master Profit and Loss?

Start with Worksheet 1 and work your way up to expert level! Each worksheet includes:

20 practice questions
Detailed solutions
Step-by-step explanations
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