Profit and Loss | Part 1/3 | English | Class 7

Summary

This video explains the concepts of profit, loss, and percentage change in a simple and engaging way. It covers how a shopkeeper buys goods at a cost price (CP) and sells them at a selling price (SP), aiming for profit. The script details how to calculate profit or loss, using examples like Umar and Lena to compare their profit percentages. Additionally, it introduces the calculation of percentage increase and decrease using real-life scenarios, such as the price of petrol. The video aims to make learning about profit, loss, and percentage concepts clear and relatable.

Takeaways

• 😀 The cost price (CP) is the price at which an item is purchased, while the selling price (SP) is the price at which it is sold.
• 😀 Profit occurs when the selling price is higher than the cost price, and it is calculated as SP - CP.
• 😀 Loss occurs when the selling price is lower than the cost price, and it is calculated as CP - SP.
• 😀 Profit percentage is calculated as (Profit / Cost Price) * 100.
• 😀 Similarly, loss percentage is calculated as (Loss / Cost Price) * 100.
• 😀 Profit can be calculated based on the cost price of the item, which helps to compare profit percentages even with different cost prices.
• 😀 A higher profit percentage indicates a better profit on the original cost price.
• 😀 Loss percentages allow us to compare losses more effectively across different situations, even when the actual amounts lost differ.
• 😀 Increase or decrease in prices (e.g., of petrol) can also be expressed as a percentage based on the original price.
• 😀 Percentage increase is calculated as (Increase / Original Price) * 100, and percentage decrease is calculated similarly.
• 😀 The script emphasizes the importance of expressing profit, loss, and price changes as percentages to easily compare and understand them.

Q & A

What is the cost price (CP) of an item?

The cost price (CP) is the price at which an item is purchased by the shopkeeper.

What is the selling price (SP) of an item?

The selling price (SP) is the price at which an item is sold by the shopkeeper.

What happens when the selling price is higher than the cost price?

When the selling price is higher than the cost price, the shopkeeper makes a profit.

How is profit calculated?

Profit is calculated by subtracting the cost price from the selling price: Profit = Selling Price - Cost Price.

What is a loss in the context of buying and selling items?

A loss occurs when the selling price is lower than the cost price, meaning the shopkeeper sells the item for less than what it was purchased for.

How is loss calculated?

Loss is calculated by subtracting the selling price from the cost price: Loss = Cost Price - Selling Price.

What does profit percentage represent?

Profit percentage represents the profit made on the cost price, expressed as a percentage.

How do you calculate profit percentage?

Profit percentage is calculated by dividing the profit by the cost price and multiplying by 100: Profit Percentage = (Profit / Cost Price) × 100.

How do you calculate loss percentage?

Loss percentage is calculated by dividing the loss by the cost price and multiplying by 100: Loss Percentage = (Loss / Cost Price) × 100.

What is the formula for calculating percentage increase in price?

The formula for calculating percentage increase is: Percentage Increase = (Increase / Original Price) × 100.

What is the formula for calculating percentage decrease in price?

The formula for calculating percentage decrease is: Percentage Decrease = (Decrease / Original Price) × 100.