Profit and Loss
What is Difference Between Cost Price and Selling Price?
The cost price of a product is the price at which it is purchased, and the selling price is the price at which it is sold.
What is Profit Formula?
Profit = Selling Price – Cost Price, is the formula used to compute profit in a transaction.
What is Formula for Discount?
A discount is the reduction provided by a merchant on a marked price.
Following formula is used to calculate the discount in terms of SP and MP: Discount = Marked Price – Selling Price.
What is Formula for Selling Price?
It generally refers to the price at which an item is sold. If the vendor makes a profit, then S.P. = C.P. + Profit
How to calculate the CP?
Cost price (CP) of a product is the amount paid for it. In some cases, it also covers overhead costs, transportation costs, etc.
- Cost Price (CP) = {100/(100 + P%)} × SP
- Cost Price (CP) = {100/(100 – L%)} × SP
Profit and Loss: Formula, Definition, Examples
Profit and Loss: Profit is the positive difference between the selling price and the cost price of an item, indicating a gain or financial benefit. It is calculated by subtracting the cost price from the selling price. Conversely, loss occurs when the selling price is less than the cost price, resulting in a negative difference. The formula for calculating profit is SP – CP, while the formula for calculating loss is CP – SP.
This article explores all the concepts related to Profit and Loss, whether it’s their formula or their percentage formula. Here we will also learn about the marked-up price and discount.
Table of Content
- What are Profit and Loss?
- Basic Concepts of Profit and Loss
- Cost Price (CP)
- Cost Price Formula
- Selling Price (SP)
- Selling Price Formula
- Marked Price (MP)
- Marked Price Formula
- Profit and Loss
- Profit (P)
- Loss (L)
- Profit and Loss Formula
- Profit Formula
- Loss Formula
- Discount Formula
- Profit and Loss Examples
- Profit and Loss – Percentage Formula
- Profit Percentage
- Loss Percentage
- Discount Percentage
- Profit and Loss Tricks
- How to Calculate Profit and Loss?
- Summarizing Important Formulas – Profit and Loss
- Profit and Loss Solved Examples
- Practice Questions – Profit and Loss
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