Calculating Gain or Loss Percentage: A Practical Example

In the world of business and economics, understanding how to calculate gain or loss percentage is crucial. This article will walk you through the process using a practical example: a man buys 3 oranges for 4 rupees and sells 4 oranges for 6 rupees.

Step-by-Step Calculation

Step 1: Calculate Cost Price (CP)

The man buys 3 oranges for 4 rupees. Therefore, the cost price per orange is calculated as follows:

Cost price per orange 4 rupees / 3 oranges 1.33 rupees/orange (approximately)

Step 2: Calculate Selling Price (SP)

The man sells 4 oranges for 6 rupees. Therefore, the selling price per orange is calculated as follows:

Selling price per orange 6 rupees / 4 oranges 1.5 rupees/orange

Step 3: Calculate Gain or Loss

Gain per orange is calculated as the difference between the selling price and the cost price:

Gain SP - CP 1.5 - 1.33 0.17 rupees per orange (approximately 0.166)

To simplify, we can represent the gain as:

Gain 1.5 - 4/3 (9/6) - (8/6) 1/6 rupees per orange

Step 4: Calculate Gain Percentage

The gain percentage formula is:

Gain Percentage (Gain / CP) * 100

Substituting the values we have:

Gain Percentage (1/6) / (4/3) * 100 (1/6) * (3/4) * 100 3/24 * 100 1/8 * 100 12.5%

Conclusion: The man has a gain of 12.5%.

Alternative Calculations

Let’s explore a few more alternative calculations based on the same scenario:

Calculation 1

CP of 4 fruits 5/6 × 4 10/3

Selling price of 4 fruits 3

Loss 10/3 - 3 1/3

Loss percentage (1/3 ÷ 10/3) × 100 10%

Calculation 2

CP/piece 5/6 Rs. 0.833

SP/piece 3/4 Rs. 0.75

Loss of 0.833 - 0.75 Rs. 0.083

Loss percentage 0.083/0.833 × 100 ≈ 10%

Calculation 3

CP of a fruit 5/6 Rs.

SP of a fruit 3/4 Rs.

5/6 - 3/4 1/12 (loss)

Loss percentage 100 * (1/12 ÷ 5/6) 10%

Calculation 4

Buying price of 1 orange 10/11 Rs. 0.91

Selling price of 1 orange 11/10 Rs. 1.10

Gain on selling of 1 orange 1.10 - 0.91 Rs. 0.19

Gain percentage 0.19 / 0.91 * 100 20.87%

Buying price of 110 oranges is Rs. 100 and selling price of 110 is Rs. 121.

Profit 21

Conclusion

In this practical example, we’ve seen how to calculate gain or loss percentage using different methods. The final gain percentage in the given scenario is 12.5%. Understanding these calculations is essential for making informed business decisions and assessing the profitability of transactions.