Profit and Loss

• Cost Price (CP): The price at which any article is purchased
• Selling Price (SP): The price at which an article is sold

Profit or Gain:

• Profit is the difference between S.P. and C.P., if S.P. is greater than C.P
• Loss is the difference between C.P and S.P., if C.P. is greater than S.P

Profit percent (P %)

Profit percent is always computed over C.P. It is:

Loss Percent (L %)

Loss percent is always computed over C.P., it is:


Short-cut for Calculation:

Suppose the Cost Price of a book is 15. Let it be sold at 20% profit. What is the selling price?

Answer:

S.P. = C.P. + Profit:

S.P. = 15 + (20/100) × 15 = 15 (1 + 20/100) = 15 × (120/100)

A 20% profit (increase) on 15 yields the product 15 × (120/100).

Writing this product enables speed in calculation.

Simplifying this product is easier compared to finding the amount of profit separately first and next adding it to the cost price.