Profit and Loss Formulas
Cost Price:
The price, at which an article is purchased, is called its cost price, abbreviated as C.P.
Selling Price:
The price, at which an article is sold, is called its selling prices, abbreviated as S.P.
Profit or Gain:
If S.P. is greater than C.P., the seller is said to have a profit or gain.
Loss:
If S.P. is less than C.P., the seller is said to have incurred a loss.
IMPORTANT FORMULAE:
1. Gain = (S.P.) – (C.P.)
2. Loss = (C.P.) – (S.P.)
3. Loss or gain is always reckoned on C.P.
4. Gain Percentage: (Gain %)
5. Loss Percentage: (Loss %)
6. Selling Price: (S.P.)
7. Selling Price: (S.P.)
8. Cost Price: (C.P.)
9. Cost Price: (C.P.)
10. If an article is sold at a gain of say 25%, then S.P. = 125% of C.P.
11. If an article is sold at a loss of say, 15% then S.P. = 85% of C.P.
12. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:
13. If a trader professes to sell his goods at cost price, but uses false weights, then
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