0Profit 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.
