Quant Study Notes (Tricks): Percentage

                                      Percentage wise distribution of Topics For Tier-II                                          

Profit and Loss

As we had discussed the Multiplying Factor concept, it is very helpful to calculate the S.P. and C.P.

S.P. = C.P. × M.F.

In case of profit M.F. is always greater then 1. 

If there is 10% profit, then 

S.P. = C.P. × 1.1

M.F. = 1.1

For 15% profit M.F. = 1.5

Let’s take an example

If markup percentage is 30%, and the profit percentage is 17% then find the discount percentage.

Let       CP = 100

M.P. = 100 × 1.3 = 130

(M.P. – Marked up price)

S.P. = 100 × 1.17 = 117

Discount % = 

M.P. × Multiplying factor = S.P

130 × M.F. = 117

M.F = .9

Discount Percentage = 10%

In case of Loss   S.P < C.P

And M.F. is smaller then 1.

Relation between multiplying factor of, Profit, Mark-up and discount:

M.F. profit = M.F. mark-up × M.F.discount.

Successive percentage change theory – by using this theory we can also concluded that-

Ex.- Inspite of giving a discount of 10% a shopkeeper manages to make a profit of 8%.

By what percentage does the shopkeeper mark-up his goods?

Method 1: MF profit = MF mark-up × M.F. disc.

1.08 = MF mark-up × 0.9

MF Mark-up = 1.2

Means a markup of 20%

·         Discount percentage is always calculated on the base of marked or list price.

Ex-A shopkeeper gives 2 items free with every 3 items purchased. In effect, what discount percentage is being offered-

Let the list price is 5x

Base value = 5x.

Discounted items = 2x = calculated value