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Formulas For Profit And Loss

December 8, 2020

Formulas for Profit and Loss Questions

Cost Price – The price at which a commodity or object is bought at known as Cost Price or CP

Selling Price – The price at which the commodity is sold at known as Selling Price or SP.

What is Profit :- Ex.If a shopkeeper brings a cloth for Rs.100 and sells it for Rs.120, then he has made a profit of Rs.20/-.

What is Loss:- If a salesperson has bought a textile material for Rs.300 and he has to sell it for Rs.250/-, then he has gone through a loss of Rs.50/-.

Profit and Loss Formulas

  • Cost Price – It is basically the price at which a commodity or object is bought at. e.g. Shopkeeper buying Sugar from Farmer to sell in his grocery store. In its short form it is denoted as C.P.
  • Selling Price – The price at which the commodity is sold at. e.g. Shopkeeper selling sugar to his customer. In its short form is denoted as S.P.
  • Gain or Profit – If Cost Price is lesser than Selling Price, gain is made.
  • Loss – If Cost price is greater than the Selling price, Loss is incurred.

Formulas for Profit and Loss

  1. Profit or Gain: SP – CP
  2. Loss – CP – SP
  3. Percentage Profit or Gain Percentage –
    		Gain x 100
    C.P.
  4. Loss Percentage –
    		Loss x 100
    C.P.
  5. C.P in Case of Gain =
    (100)x S.P.
    (100 + Gain)
  6. C.P in Case of Loss =
    (100)x S.P.
    (100 – Loss)
  7. S.P in Case of Gain =
    (100 + Gain)x C.P.
    (100)
  8. S.P in Case of Loss =
    (100 – Loss)x C.P.
    (100)
  9. If you sell two same items, first at x% profit and 2nd one at x% loss. Then a loss is incurred always, which is given by = ( \frac{x}{10})^2
  10. Marked price and discount
  • Selling price = marked price – discount
  • Discount = marked price – selling price
  • Marked price = selling price + discount

Note:
(a) If there is no discount, the marked price is equal to the selling price
(b) Discount is always calculated on marked price unless otherwise stated.

11.Discount Percentage = (Discount/Marked price) x 100

12. Successive discounts:- If d1% , d2% d3%are successive discounts on marked price,
selling price=marked price \left ( \frac{100-d_{1}}{100}\right )+\left ( \frac{100-d_{2}}{100}\right )+\left ( \frac{100-d_{3}}{100}\right )

Read Also : Tips & Tricks to solve profit and loss.

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