Selling Price Formula

What are Profit and Loss?

Profit and Loss are concepts in mathematics that help us determine that the market price of a commodity is sold for a price more than the price at which the commodity is bought or less the price. In mathematics, the profit and loss concept is used to determine the market price of a good and whether or not it is profitable. Every product on the market has a cost price as well as a selling price. Knowing the cost and selling prices of a commodity allows you to calculate the acquired profit or loss....

Basic Concepts of Profit and Loss

In Profit and Loss, the most basic concepts are the prices of various items throughout the cycle of their purchase and sale. These prices are Cost Price, Selling Price, and Marked Price which are abbreviated as C.P., S.P., and M.P., respectively....

Cost Price (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 Formula

Formula for cost price is given as:...

Selling Price (SP)

The selling price (SP) of a product is the amount at which it is sold. It might be greater, equal to, or less than the product’s cost price....

Selling Price Formula

Formula for selling price is given as:...

Marked Price (MP)

It is the price that is displayed on an item or commodity. It is sometimes referred to as the list price or the tag price. If there is no discount applied to the listed price, the selling price is the same as the marked price....

Marked Price Formula

Formula for Marked price is given as:...

Profit and Loss

Profit and Loss are two major financial concepts which help us understand vast variety of things from daily budgeting to complex economical models. Profit and Loss also help us estimate the market price of a commodity and to assess how profitable a firm is. There is a selling price and a cost price for every product. Based on the values of these prices, we may compute the profit or loss for a certain product....

Profit and Loss Formula

Different formulas for Profit and Loss are discussed in the following:...

Profit Formula

Profit is better defined as the difference between the cost price and the selling price. A product’s or commodity’s cost price is its real price, but the selling price is the amount at which the product or commodity is sold. So, if the product’s selling price surpasses its cost price, the corporation has generated a profit. Below is a basic profit formula:...

Loss Formula

When the cost price of a transaction is greater than the selling price, we incur a loss....

Discount Formula

When the item is sold at a price which is less then the marked price, then we say item is sold at discount and it can be calculated using the formula,...

Profit and Loss Examples

Sarah decides to open her own coffee shop. She calculates her monthly expenses for rent, utilities, wages, and supplies to be $8,000. In the first month, her coffee shop generates $10,000 in sales. Therefore, Sarah’s profit for the month is calculated as Sales – Expenses = $10,000 – $8,000 = $2,000. However, if in the following month, sales drop to $7,000 due to less foot traffic, her loss would be $8,000 (expenses) – $7,000 (sales) = $1,000. Alex buys a used car for $5,000, intending to sell it for a profit. After purchasing, he spends an additional $500 on repairs and improvements. He then sells the car for $6,200. To find his profit, Alex subtracts his total expenses ($5,500) from his sale price, which is $6,200 – $5,500 = $700. Jamie, a freelance graphic designer, takes on a project for which she charges $2,000. Her expenses for software subscriptions, internet, and other utilities for the month amount to $300. Therefore, Jamie’s profit from this project is $2,000 (income) – $300 (expenses) = $1,700. If, in a different month, Jamie only secures a project that pays $250, her loss would be her expenses minus her income, or $300 – $250 = $50. Mark invests $10,000 in shares of a technology company. Over the year, the value of his investment grows to $12,000, so his profit from this investment would be $12,000 (final value) – $10,000 (initial investment) = $2,000. Conversely, if the market value had dropped and his investment was worth only $9,000 at the end of the year, Mark would face a loss of $10,000 (initial investment) – $9,000 (final value) = $1,000....

Profit and Loss – Percentage Formula

Profit and Loss percentage is the profit and loss represented in the form of percentage and the formula for these are discussed as follows:...

Profit and Loss Tricks

There are various points or short tricks that can be remembered to solve the problems of Profit and Loss with ease. Some of such points are as follows:...

How to Calculate Profit and Loss?

The cost price and selling price of the goods must be known in order to compute profit and loss. We can use the following steps to calculate the profit and loss for any given data set....

Summarizing Important Formulas – Profit and Loss

Profit = SP – CP Loss = CP – SP Profit (%) = {Profit/CP} × 100 Loss (%) = {Loss/CP} × 100 Discount = Marked Price – Selling Price Discount (%) = (Discount/MP) × 100...

Profit and Loss Solved Examples

Question 1: A shopkeeper buys pens in bulk for Rs. 30 each. He sells each of them for Rs. 65. What will be the profit and the profit percentage?...

Practice Questions – Profit and Loss

Some practice problems based on the topics discussed on the topic of Profit and Loss, are:...

Profit and Loss – FAQs

What is Difference Between Cost Price and Selling Price?...