Profit and Loss Shortcuts - Using Rule of Fraction

The use of “Rule of Fraction” is dominant. We should understand this rule very well because it is going to be used in almost all the questions.

THE RULE OF FRACTION SAYS:

If our required value greater than the supplied value we should multiply the supplied value with a fraction which is more than one. And if our required value is less than the supplied value we should multiply the supplied value with a fraction which is less than one.

• If there is a gain of x%, the calculating figure would be 100 and (100 + x).
• If there is loss of y%,the calculating figure would be 100 and (100 – x).

• If the required value is more than the supplied value, our multiplying  fractions   should be (100+x)/100  or 100/(100-y) ( both are greater than 1).

• If the required value is less than the supplied value, our multiplying fractions should be 100/(100+x)  or (100-y)/100   (both are less than 1).

Profit = selling price (SP) – cost price (CP)

Loss = Cost price (CP) – Selling price (SP)

TO FIND THE GAIN OR LOSS PER CENT :-

The profit or loss is generally reckoned as so much per cent on the cost.

Gain or loss per cent = (Loss or gain)/CP  x 100

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