Profit and Loss (Basic Concepts)
Terminology:
Cost Price (CP):- The price at which an article is purchased is called its cost price and is denoted as CP.
Selling Price (SP):- The price at which an article is sold is called its selling price and is denoted as SP.
Profit (P):- When the article is sold at higher price than that of its cost price, then we can say there is a profit.
i.e., SP > CP --> Profit
and P = SP - CP
Loss (L):- When the article is sold at lesser price than that of its cost price, then we can say there is a loss.
i.e., CP > SP --> Loss
and L = CP - SP
Marked Price (MP):- Marked price is the normal price of the thing without any discount. It is also called as MRP, or Labelled Price.
Discount (D):- It is the reduced price of MRP and is expressed in %.
Basic Formulae:
1. Profit (P) = SP - CP
2. Loss (L) = CP - SP
3. Profit % = [P/CP]*100
4. Loss % = [L/CP]*100
NOTE: Percentage is always calculated on Cost Price only.
5. SP = [(100+P%)/100]*CP
6. SP = [(100-L%)/100]*CP
---------------------------------------------------------------------------------
6. SP = [(100-L%)/100]*CP
---------------------------------------------------------------------------------
