business mathematics

1. The money paid by a shopkeeper to buy goods is called the cost price(C.P.) of the
shopkeeper. The price at which he sells the goods is called the selling price(S.P.) of the shopkeeper.

2. If the selling price(S.P.) is greater than the cost price(C.P.) then the shopkeeper gets profit.
Profit = Selling price - Cost price.

3.If the selling price is less than the cost price then the shopkeeper gets loss.
Loss = Cost price - Selling price.

4. For comparison of profit or loss obtained in different transactions, they are they are expressed percentages.
Suppose
S.P = Selling price, C.P = Cost price,
P = Profit, L = Loss

Ratio of profit to cost price = P : C.P.

Percentage of profit = (P/c.p)*100.

Percentage of loss = (L/c.p)*100.