Cost Price

Cost Price is the price at which an article is purchased by the buyer.

Profit and loss are always calculated on the basis of the cost price
unless otherwise mentioned.

Profit = S P – C P Profit % = (Profit /Cost Price)*100

Loss = C P – S P Loss % = (Loss /Cost Price)*100

 Problem

Find the cost price of an article which is sold for Rs. 220 at a loss of 12%.
 Marked price

M P (Marked Price) = C P + (%markup on C P)

If the cost price of an article is $ 300 and the markup is 20%. What is the Selling price if the
shopkeeper provided 10% Festival discount?
 Fixed Cost & Variable Cost
Fixed Cost : The cost to the firm which is independent on the amount or quantities of articles produced.

Variable cost: The cost to the firm which depends on the amount or quantities of articles produced. It is
associated with the volume of production.
 Successive Transactions
Amit decided to buy an article and spent Rs. 110 on repairing it. After repairing he sold it to Ajay and earned a
profit of 20% on it. Further, Ajay sold it to Aakash at a loss of 10%. Finally, Aakash sold it for Rs. 1188 and
earned a profit of 10%. What was the that Amit paid for the article?
A. Rs. 740 B. Rs. 780 C. Rs. 840 D. Rs. 860 E. 890
 Problem
A merchant sells articles at the rate of $160 per article. He computes his profit to be 25%. What is the cost price of
the article?
 Problem

A trader buys 20 articles for $300 and sells 15 of them for $300. What % profit does she make on her transaction?
 Problem

If the cost price of 44 articles is equal to the selling price of 40 articles, what is the % profit or % loss made by the
merchant?
 Problem
By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant
make if the article is sold at 95% of its marked price?