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Profit & Loss

· Explanation

💡 Explanation

🎓 Deeper Dive — Adults

Profit & Loss is the DNA of every business decision — from a chai stall to Amazon! 📊

When you see "₹999 — MRP ₹1999" — check if the discount is on actual CP or an inflated MRP. Brands regularly inflate MRP to make discounts look bigger than they are.

Successive discount trap: "Get 30% + 20% off!" sounds like 50% — it's actually only 44% off. Formula: Equivalent = a + b − (a×b/100). Shops exploit this constantly.

Dishonest trader trick: A trader uses 900g weight but charges for 1kg. Profit% = (100/900) × 100 ≈ 11.1%. This question appears in almost every Bank PO paper.

One formula to rule them all: SP = CP × (100 ± P%) ÷ 100. Memorise this and you can solve any SP/CP problem in under 10 seconds.

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