Profit and Loss

Cost Price (CP)

It is the price at which an article is purchased.

Selling Price (SP)

It is the price at which an article is sold.

Profit / Loss:

It is the difference between the selling price and the cost price. If the SP is greater than CP, it is Profit; and if SP is less than CP, it is Loss.

Profit = S.P - C.P

Loss = C.P - S.P

Profit%:

It is the profit computed as a percentage of CP.

Profit% = $\frac{\text{Profit}}{\text{CP}}$ x 100

CP, Profit and Loss can also be expressed in terms of

CP (1 + profit%) = SP, if there is an overall profit in the transaction

Loss%:

It is the loss computed as a percentage of CP.

Loss% = $\frac{\text{Loss}}{\text{CP}}$ x 100

CP, Profit and Loss can also be expressed in terms of

CP( 1 - loss%) = SP, if there is an overall loss in the transaction

Note:

1. Loss or gain is always based on CP.
2. If a person sells two articles at the same price one at a profit of X% and the other at a loss of X%, then the seller incurs a loss given by

Loss% = $\frac{X^2}{100}$

2. If a person sells goods at CP but uses false weight, the profit percentage of the person is given by

Profit% = $\frac{\text{True Weight - False Weight}}{\text{False Weight}}$ x 100