Profit and Loss

Cost price (CP):

The price at which goods or articles are purchased is known as the cost price.

Net CP of an article = CP + Overhead expenses

Selling price (SP):

The price at which goods are sold is known as the selling price.

Wholesale price:

It is the price at which articles are purchased or sold in bulk.

Retail price:

It is the price at which articles are purchased or sold individually.

When the selling price is greater than the cost price, there is a profit.

The profit on 100 rupees is called profit per cent or gain per cent.

Profit or Gain = Selling price – Cost price

Profit % or Gain % = ( Profit or Gain CP  × 100)%

Profit or gain is always reckoned on CP.

When the selling price is less than the cost price, there is a loss.

The loss on 100 rupees is called loss per cent. Loss = Cost price – Selling price

Loss % = ( Loss CP  × 100 )%

Loss is always reckoned on the cost price.

Finding SP when CP and Gain % or Loss % is given:

Gain = (Selling price) – (Cost price)

Selling price = Cost price + Gain

Gain % = ( Gain CP × 100)
⇒ Gain =  Gain % 100 × CP  ...(ii)

SP = CP +   Gain % 100 × CP

∴ SP = ( 100 + Gain % 100 ) × CP

SP = ( 100 - Loss % 100 ) × CP

Selling price = Cost price - Loss

Loss % = (  Loss CP × 100)

⇒ Loss = (  Loss % 100 × CP)

SP = CP ( 100 - Loss % 100 )

Finding CP when SP and Gain % or Loss % is given:

CP = ( 100 100 + Gain % ) × SP

CP = ( 100 100 - Loss % ) × SP

Summary

Cost price (CP):

The price at which goods or articles are purchased is known as the cost price.

Net CP of an article = CP + Overhead expenses

Selling price (SP):

The price at which goods are sold is known as the selling price.

Wholesale price:

It is the price at which articles are purchased or sold in bulk.

Retail price:

It is the price at which articles are purchased or sold individually.

When the selling price is greater than the cost price, there is a profit.

The profit on 100 rupees is called profit per cent or gain per cent.

Profit or Gain = Selling price – Cost price

Profit % or Gain % = ( Profit or Gain CP  × 100)%

Profit or gain is always reckoned on CP.

When the selling price is less than the cost price, there is a loss.

The loss on 100 rupees is called loss per cent. Loss = Cost price – Selling price

Loss % = ( Loss CP  × 100 )%

Loss is always reckoned on the cost price.

Finding SP when CP and Gain % or Loss % is given:

Gain = (Selling price) – (Cost price)

Selling price = Cost price + Gain

Gain % = ( Gain CP × 100)
⇒ Gain =  Gain % 100 × CP  ...(ii)

SP = CP +   Gain % 100 × CP

∴ SP = ( 100 + Gain % 100 ) × CP

SP = ( 100 - Loss % 100 ) × CP

Selling price = Cost price - Loss

Loss % = (  Loss CP × 100)

⇒ Loss = (  Loss % 100 × CP)

SP = CP ( 100 - Loss % 100 )

Finding CP when SP and Gain % or Loss % is given:

CP = ( 100 100 + Gain % ) × SP

CP = ( 100 100 - Loss % ) × SP