Profit, Loss & Discount
Syllabus Unit: Quantitative Aptitude
Why it matters
Chapter overview
Profit and loss questions on SSC CGL are almost always solvable with percentage multipliers rather than algebra — marking up, discounting, adding GST, and shortchanging with a faulty weight are all just chained percentage operations on a single cost price. This topic builds the CP-SP-MP relationship, the multiplicative rule for successive discounts, GST layering, and the faulty-weight gain formula.
1Profit, Loss & Marked Price
Profit and loss percentages are always calculated on cost price (CP) unless the question says otherwise — keep MP, SP and CP as three distinct percentages of the same base.
Learning Objectives
- Compute profit% = (SP−CP)/CP × 100 and loss% = (CP−SP)/CP × 100, always based on CP.
- Relate marked price, discount and SP using SP = MP × (1 − discount%/100).
- Find SP given CP and a desired profit%, or find CP given SP and a stated profit%/loss%.
- Solve combined mark-up-then-discount problems by chaining percentage multipliers instead of absolute values.
Key Terms
The entire profit-loss chapter rests on one rule: profit% and loss% are percentages of CP. Every trap in this chapter tries to get you to compute the percentage on SP or MP instead.
Marked price and discount
Worked example: mark-up then discount
CP = 100. Marked up 25%: MP = 125. Discounted 10%: SP = 125 × 0.9 = 112.5. Profit = 12.5% of CP — note this is NOT simply 25% − 10% = 15%, since the discount applies to the marked-up price, not the original CP.