Terms related to Profit and Loss
- Cost price (C.P): Price at which an item is purchased.
- Selling price (S.P): Price at which an item is sold.
- Profit: When the selling price is greater than the cost price, it is called profit.
- Loss: When the selling price is less than the cost price, it is called as loss.
- Profit or loss per cent: Profit or Loss after selling an item of Rs. 100(C.P).
- Discount: Discount is the reduction in the market price.
- Market Price: Retailer marks the price on a label and attaches it to the articles.
Profit & Loss Calculation
Profit or Gain = selling price (S.P) – cost price (C.P)
S.P = 150, C.P = 20
Profit OR Gain = (150-120) = 30
Loss = Cost price(C.P) – Selling price(S.P)
C.P = 100, S.P = 90
Loss = (100-90) = 10
Note: Profit or Loss per cent is always calculated on cost price(C.P).
Formulas to calculate Profit & Loss
|(i) % of Profit||=||Profit x 100||Cost price|
|(ii) % of Loss||=||Loss x 100||Cost price|
(iii) In case of profit:
|S.P||=||C.P||100 + % of profit||100|
|C.P||=||S.P x 100||100 + % of profit|
(iv) In case of Loss:
|S.P||=||C.P||100 – % of Loss||100|
|C.P||=||S.P x 100||100 – % of Loss|