Concepts Covered
Profit and Loss is one of the easy concepts in GMAT Math and is a part of the arithmetic book of 4GMAT's GMAT Math Lesson Book. Basic concepts, formulae are covered and is followed by examples and exercise problems. 4GMAT's GMAT Math Lesson Book in this chapter covers the following concepts:

1. The Chapter begins with the explanation of the meaning of cost price and selling price
2. The meaning of the terms profit and loss is explained and the relationship between profit, loss, cost price and selling price is given
3. Expressing profit and loss as a percentage of cost price
4. Converting percentages of profit or loss expressed in terms of selling price to percentages of cost price
5. Illustrative examples demonstrate the utilization of the above explained relationship
6. Explanation of the meaning of the terms marked price and discount along with the relationship between selling price, marked price and discount
7. Illustrative examples to help understand the above stated concept is also given
8. There are 26 solved examples with detailed explanations, along with highlighting shortcut methods that can be used as and when applicable
9. 37 exercise problems are given with the answer key and explanatory answers
10. An objective type speed test with around 40 questions with explanatory answers and answer key provided for the speed test

Here is an example of a typical solved example in this chapter.

Question
The cost price of 40 articles is equal to the selling price of 35 articles. What is the profit /loss percent?

Explanatory Answer
Let the cost price of one article be $1, then the cost price of 40 articles is $40

The question states that the selling price of 35 articles = cost price of 40 articles = $40
Therefore, now we know the selling price for 35 articles

Now, let us find the cost price for 35 articles.
We have assumed the cost of 1 article = $1. Therefore, cost price of 35 articles = $35

Therefore, the profit/loss made on 35 articles = S.P of 35 articles - C.P of 35 articles
i.e., $40 - $35= $5, or a profit of $5

Hence, % Profit =

= = 14.28% profit