1. The agent earns a 12% commission on sales up to Rs. 25,000 and a 15% commission on any sales exceeding Rs. 25,000. 2. The agent's total sales for the month were Rs. 67,000. 3. To calculate the commission: the commission on the first Rs. 25,000 of sales is 12% of Rs. 25,000; the commission on sales exceeding Rs. 25,000 is 15% of Rs. 67,000 - Rs. 25,000.

1. Presented By :- Miss Pragati Khade
Dada Patil Mahavidyalaya,Karjat

2. Profit
The profit is defined as the amount gained by selling a product,
which should be more than the cost price of the product. It is
the gain amount from any kind of business activity.
In short, if the selling price (SP) of the product is more than the
cost price (CP) of a product, then it is considered as a gain or
profit.
Profit or Gain = Selling Price – Cost Price

3. Loss(L)
The amount the seller incurs after selling the product less than
its cost price, is mentioned as a loss.
Loss = Cost Price – Selling Price
Trade Discount :- Traders who buy goods in large quantities from
Manufacturers or wholesalers are generally given an allowance
on the list price of goods . This is known as Trade Discount .
Cash Discount :- The discount given by retailer to a purchaser is
Called Cash Discount .

4. Cost Price (CP)
The amount paid for a product or commodity to purchase it is
called a cost price. Also, denoted as CP. This cost price is further
classified into two different categories:
Fixed Cost: The fixed cost is constant, it doesn’t vary under any
circumstances.
Variable Cost: It could vary depending as per the number of
units.
Selling Price (SP)
The amount for which the product is sold is called Selling Price.
It is usually denoted as SP. Also, sometimes called a sale price.

5. • Discount = Marked Price – Selling Price
• And Discount Percentage = (Discount/Marked price)
x 100
Marked Price Formula (MP)
This is basically labelled by shopkeepers to offer a
discount to the customers in such a way that,

6. Profit or Gain = Selling price – Cost Price
Loss = Cost Price – Selling Price
Profit percentage = (Profit /Cost Price) x 100
Loss percentage = (Loss / Cost price) x 100
Profit and Loss Formulas
Now let us find profit formula and loss formula.
• The profit or gain is equal to the selling price minus cost
price.
• Loss is equal to cost price minus selling price.
The formula for the profit and loss percentage is:

7. Profit and Loss Tricks
1. Profit, P = SP – CP; SP>CP
2. Loss, L = CP – SP; CP>SP
3. P% = (P/CP) x 100
4. L% = (L/CP) x 100
5. SP = {(100 + P%)/100} x CP
6. SP = {(100 – L%)/100} x CP
7. CP = {100/(100 + P%)} x SP
8. CP = {100/(100 – L%)} x SP
9. Discount = MP – SP
10.SP = MP -Discount

8. Examples
Type 1. To find percent Profit /loss when S.P and C.P are given
1. A scooter Costing rs 12000 was sold for rs 10400 after two years . Find
Percentage loss
Solution :-
Loss = 12000-10400
= 1600
On C.P 12000 loss 1600
= 100 X 1600
12000
= 40/3
= 13.33 % loss

9. Type 2. To find percent S.P when C.P and percent Profit / Loss
given
1 . Goods Worth RS 6000 are purchased . What should be the
S.P to earn profit of 12 % ?
Solution :- To earn 12 % profit , an article costing rs 100 should
be sold for 112 Rs
When C. P is Rs 100 , S.P is 112 then
6000 x 112 = 6720
100
Goods should be for Rs 6720.

10. Type 2. To find percent C.P when S.P and percent Profit / Loss
given
1. A camera when sold for Rs 1674 resulted in a loss of & 7% .
What is C.P value Camera .
Solution :- A loss of 7 % means if the camera was purchased for rs
100 , it is sold
When S.p is Rs 93 , C.p is 100
= 1674 X 100
93
= 1800
C. P of the camera is Rs 1800.

11. 3 . To find percent profit /loss when some goods are sold at profit and remaining at loss
1 .A book Seller Purchase 800 Copies of a book for rs 4400 .
If He sold 600 at a profit at 20% and remaining copies at a loss of 25%
Find the Percent Profit and Loss in The total Transaction .
Solution
Since C.p of 800 copies is Rs 4400
each copy costs rs 5.50
C.P of 600m Copies is (600 X 5.50) = 3,300 Rs
S.p of these copies at 20% profit = 100+20 X3300
100
= 1.2 X 3300
= 3,960
C.P Of remaining 200 Copies = Rs (200 X 5.50 )
= Rs 1,100

12. These Copies are sold at a loss of 25%
S.P = 100-25 X 1100
100
= ¾ X 1100
=825
Total S. P = (3960 + 825 )
= 4785 Rs
Profit = SP –Cp
= 4785 – 4400
= 385
When Cp is Rs 4400 , Profit is Rs385 100 X 385 = 8.75
4400
When CP is Rs 100 , profit is 8.75

13. 1. A man Sold two machines at Rs 990 each . On one he gained 10 %
Profit and other he lost 10 Total Transaction .
2. Ravi sold two machines at Rs 960 each . On one he gained 20 %
and on the other he lost of 20% . Find the Percentage
Profit or loss in his total transaction .
3. A car having cost rs 1,00,000 was sold for rs 80,000 after 4 years
Find the Percentage of Loss .
4 A car costing rs rs 350000 was sold for rs 2,85000 after two years .
Find the Percentage of Loss .
5. A goods worth Rs 10000 are purchased . What should be S.P .
What should be S.p to earn a profit of 10 % .

14. Introduction to Commission and Brokerage
Definition:
Commission is the incentive received by the insurance
agent or salesperson for the sales achieved in a given period.
Commission is generally paid as a percentage of the
premium on the insurance policies.
This proves as an efficient way of rewarding the concerned
person wherein his rewards are directly proportional to
the policies sold by him.
The remuneration paid by manufacturer to the agent is
called Commission

16. Definition:
Broker
The goods which are sold by middleman is known as
agent and that agent is known as Broker (Middle Person )

17. Examples
1. A commission agent gets 12% commission upto a sale of rs 30000
and 15 % on sale exceeding of rs 30000/- . In a month his sales are
Rs 67000/- find his commission .
Solution :-
The amount of commission of RS 30000/- @12%
commission is 3600
Since the total sale is 67000/- the sale exceeding 30000/- is worth
rs 37000/-
The Amount of commission on 37000/- is RS 4050
So the total commision earned by the agent is
3600+ 4050 = 7650

18. 2. A commission agent gets 12% Commission upto sales Rs 25000
and 15% on the sales Exceeding rs 25000/- In a month his sales
are Rs 67000. Find the Commission .
3. A commission agent gets 10% Commission Upto sales of 50000%
And 13% on the sale exceeding rs 50000 In a Month his sale are
Rs 75000. Find The Commission .
Solution :-
The amount of commission is rs 50000/- @10% is
50000x10/100=5000 RS
Since the Total sale is Rs75000/- the sale exceeding rs 50000 is worth
75000-50000=25000/-

19. The amount of commission on Rs 25000 @ 13% is
25000/100 X 13 = Rs 3250/-
Hence the total commission earned bythe agent is
Rs 5000 + Rs 3250 = Rs 8250
The total Commission earned by the agent is Rs 8250 .

20. 4 An Agent was paid rs 30000/- as commission on the sale of
vehicles . If the Commission was 10 % and price of each vehicle is
RS 15000/-. Find How much Vehicles did he sell

21. Given :-
Commission % =12%
Sales upto Rs 25000/-
15% on the sales Exceeding Rs 25000/-
Sale in month is 67000/-
Find Commission .