Profit and Loss Concept
Posted by
Ravi Kumar at Friday, July 1, 2011
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Cost Price:
The price at which an article is purchased, is called its cost price,abbreviated as C.P.
Selling Price:
The price at which an article is sold, is called its selling price,abbreviated as S.P.
Profit or Gain:
If S.P. Is greater than C.P. The seller is said to have a profit or gain.
Loss:
if S.P. Is less than C.P., the seller is said to have incurred a loss.
Formulae:
1.Gain=(S.PC.P)
2.Loss=(C.PS.P)
3.Loss or Gain is always reckoned on C.P.
4.Gain%=(gain*100)/C.P
5.Loss%=(loss*100)/C.P
6.S.P=[(100+gain%)/100]*C.P
7.S.P=[(100loss%)/100]*C.P
8.C.P=(100*S.P)/(100+gain%)
9.C.P=(100*S.P)/(100loss%)
10.If an article is sold at a gain of say,35%,then S.P=135% of C.P.
11.If an article is sold at a loss of say,35%,then S.P=65% of C.P.
12.When a person sells two similar items, one at a gain of say, x%, and the other at a loss of x%,then the seller always incurs a loss given by Loss%=[common loss and gain %/10]2=(x/10)2
13.If a trader professes to sell his goods at cost price,but uses
false weight,then Gain%=[(error/(true valueerror))*100]%
14.Net selling price=Marked priceDiscount