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.
Profit and Loss are two common terms that are widely used in our daily life, and the meaning of profit and loss are:
- Profit: It is the difference in the money that a person gains when he sells any object. For example, if Kabir buys 12 banans at 24 rupees and sells each banana at 3 rupess he makes a profit of 1 rupees in selling each banana.
- Loss: It is the difference in the money that a person looses when he sells any object. For example, if Kabir buys 12 banans at 24 rupees and sells each banana at 1.5 rupess he makes a loss of 0.5 rupees in selling each banana.
For example, a businessman makes a profit when the selling price of an item is higher than the cost price of that item, and a loss when the cost of purchasing the item is more than the selling price.
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
Contact Us