Enquiries into profit and lossGeetha Venkataraman

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If money doesn’t grow on trees…

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..where does it come from?

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It all comes from…

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John sells fruits in the market

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₹ 80 per kg

Apples for sale

₹ 80 per kg

Apples for sale

which he buys from the farmer – Old McDonald

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₹ 60 per kg

Cost of Apples

Every kg. of apple he sells, earns him …

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₹ 80 per kg

Apples for sale

SELLING PRICE COST PRICE

₹ 60 per kg

Cost of Apples

Profit of …

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PROFIT

₹ 40

What if tomorrow, he buys at same price but can sell only at …

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₹ 40 per kg

Apples for sale

Loss of …

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LOSS

₹ 40

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Kevin charges John to carry apples to the market…

Transportation charges

₹ 10 per kg

John bears a total cost of …

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COST PRICE

₹ 60 per kg

Cost of ApplesTransportation

charges ₹ 10 per kg

OVERHEAD CHARGES

Total Cost of Apples = ₹ 70 per kg

Additional money spent on the articles purchased like repairing, transportation are called overhead charges.

On Christmas, he offers a 20% discount!

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₹ 80 per kg

Apples for sale

₹ 80 per kg

Apples for sale

Anil gets his product at a discounted price of …

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MARK PRICE₹ 80

per kg

DISCOUNT

SELLING PRICE ₹ 64per kg

Some Important Formulae..

1. 2. Loss = Cost Price − Selling

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Any questions?

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