Profit And Loss
Profit And Loss Important Formula
Cost Price: – The Price at which an Article/Thing is purchased is called Cost Price CP).
Selling Price: – The Price at Which an Article/Thing is sold is called Selling Price (SP).
Gain or Profit = Selling Price – Cost Price
Loss = Cost Price – Selling Price
Profit Percentage = (Profit / Cost Price)* 100
Loss Percentage = (Loss/ Cost Price)* 100
Note: – The Profit and Loss Percent is always calculated on the Cost Price.
Marked Price: – Price that is indicated or marked on the article or thing (MP).
Discount: – It means Reduction given on the marked price of article/thing.
Discount Percent = 100* discount / MP.
Selling Price = (100-Discount percentage / 100)* MP.
Some Examples Are :
Example1. A chair is bought for Rs 1950 and Sold at Rs 2340. Find the Gain Percent.
Solution: CP = 1950 and SP =2340
Gain = SP – CP Therefore Gain = (2340-1950) = Rs 390
Now Gain Percent = (390/1950)*100 = 20 %
Example2. By Selling a Cow for Rs 990, a man Loses 10%. At What price should be sell to gain 10%.
Solution: SP = 990 and Loss % = 10
Now From Formula we have SP = ((100- loss %) /100)*CP
Therefore CP= (SP*100 / 100 –loss%)
CP = (9900 / 90) = Rs 1100
Now SP = ((100 + profit%) /100)*CP There Fore SP = ((110)/100)* 1100 = Rs 1210