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

Post a Comment