Marked Price (MP) and Discount
The price that is written on a product’s label by the merchant is called the “marked price.” A discount is always offered on a product’s marked price. Merchants or retailers offer discounts to consumers to attract them and increase the sales of a product.
- Discount = Marked price (MP) – Selling Price (SP)
- Discount Percentage = (Discount/MP) × 100
Now, the formula for selling price in terms of discount and the marked price is:
Selling Price = Marked Price (MP) – Discount
Selling Price Formula
Selling Price Formula: Selling price is defined as the amount a customer pays for a product or service. Every day we purchase one thing or the other, and every product has a certain price. So, the price that we pay to the seller to buy the product is called the “selling price,” whereas the amount at which the product is bought by the seller is known as the “cost price.”
How to Calculate Selling Price: First, calculate the total cost of purchasing all units. Then, divide this total cost by the number of units bought to determine the cost price per unit. Next, utilize the selling price formula, which is SP = CP + Profit Margin, to determine the final price. Add the profit margin to the cost price to determine the appropriate selling price for the commodity.
This article provides in-depth on Selling Price Formula, and how to calculate the selling price from cost price and profit.
Selling Price Formula
Table of Content
- What is Selling Price?
- Selling Price Formula
- Selling Price Formula with Profit Percentage
- Selling Price Formula with Loss Percentage
- Difference Between Selling Price and Cost Price
- Cost Price
- Marked Price (MP) and Discount
- Selling Price Formulas
- Solved Examples on Selling Price Formula
- Practice Problems on Selling Price Formula
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