Profit & Loss

Profit & Loss

Profit and loss

Cost Price (C.P): The amount paid to purchase an article or the price at which an article is made is known as its cost price. We also generally include the overhead expenses in CP. Selling Price (S.P) : The price at which an article is sold is known as selling price. Profit: If the selling price (S.P) is greater than the cost price (C.P) the difference between the selling price (S.P) and cost price(C.P) is called profit. Profit = SP CP Loss: If the selling price (SP) of an article is less than cost price (CP), he difference between the cost price and selling price is loss. Loss = CP SP Profit and Loss Percentage: Profit percent and loss percent is always calculated on cost price or by taking cost price on base Profit % = Loss % = If profit is P% on a cost price CP Profit = CP Selling Price (SP) = CP + Profit If loss is L% on a cost price CP Loss = CP Selling Price (SP) = CP - Loss also SP = CP (1also SP = CP (1+

Marked Price:
A trader after buying an article, mark it with a price higher than the price at which he wants to sell it. This higher price is called as marked price. Marked price is also known as list price, tag price, quote price etc. Discount is expressed as a percentage of market price -(Discount) Marked Price Selling Price +(Profit) Cost Price

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Profit & Loss We can have selling price in two ways (1) Marked price Discount = Selling Price. (2) Cost Price + Profit = Selling Price. The relationship between cost price (CP) and selling price (SP) is typically defined through a percentage relationship Suppose the selling price (SP) is 25% greater than cost price than cost price is less than selling price by 20%

Similarly if SP is greater than CP by 20% ( ) then CP is less than SP by 16.66 % ( .

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