Direct proportion to profit and loss calculations

Direct proportion to profit and loss calculations

Let us consider such a calculation.

If a chair selling at Rs. 540 makes a profit of 8% what is the cost price of the chair?

Price and percentage are given in this calculation. What we need to find out is the price i.e., cost price.

Since we are going to put this calculation into direct proportion, the two variables we need are price and percentage.

We are given a sale price. It is Rs. 540. How to express this as a percentage?

Before that if the cost price is expressed as a percentage, is it always 100? In that case, the selling price should be calculated by adding the cost price percentage and the profit percentage. That means 100 + 8 = 108 percent?

Why is it that if you add 8 percent to 100 percent, then you have said that the profit in the calculation is 8 percent. We use it.

Whether it is a profit or a loss, the basis for finding the percentage is the cost price, so the percentage of the cost price is always 100, isn't it?

Let us see how you would set the selling price as a percentage if we assume that the above calculation is not profitable.

Yes, that's right. You will get 92 percent by deducting 8 percent from the 100 percent cost.

So, in the cost price - sales price calculations, the cost price is equal to 100, while the sales price is equal to the percentage, if there is profit then sales price percentage is 100 plus the profit percentage, and if there is loss then the sales price is 100 minus the  percentage of loss?

That's the point.

Now let's set up a table for the above calculation? What else is the table? Are you saying that we directly create the ratio, equalize it, cross multiply it and find the value?

That's how to find out. This straight line method is very helpful to find the answer so quickly.

However, we are doing it here by setting the table so that no one gets confused.

Price	x	540
Percentage	100	108

What is right?

All we have to do is find out the cost price. It is a proportional equal to 100 percent. So we have set x above 100 percent of the table.

 

540 is the selling price with a profit, so we add the profit percentage 8 to 100 and get 108 percent.

Now in proportional calculation method

x / 100 = 540 / 108

x = (540 ×100) / 108

x = 500

So the cost price is Rs. 500.

For this cost price of Rs. 500, calculate 8% profit amount. you will get answer in direct proportion method. Also its selling price is Rs. 540 is given. But you take cost price is Rs. 500. if the sale price of a chair is sold at 8 percent profit, then find out sales price using direct proportion method. Can we find out by ourselves whether the answer of the calculation we have solved is correct?

You mean you can do so many tricks using direct proportion? Yeah, so you're thinking proportionality is normal or ordinary one?

And we can apply direct proportion to discount calculations as well. We will see that next.

*****