Profit and Loss: Introduction

Cost Price (CP): Cost price is the price of an item, at which an item can be purchased.

Selling Price (SP): Selling price is the price of an item, at which an item is sold.

Profit or Gain: If the cost price (CP) of an item is less than that of selling price (SP) of an item, then the seller always will have Profit or Gain. $$Profit \ or \ Gain = SP - CP$$

Example (1): A man perchased an item for $$Rs.100$$, and sold it for $$Rs.120$$, then find the profit or loss of the man?

Solution: Given, $$CP = Rs.100$$, and $$SP = Rs.120$$

Here, selling price is greater than the cost price of the item so there is a Gain.$$Profit \ or \ Gain = SP - CP$$ $$Profit \ or \ Gain = 120 - 100$$ $$= Rs.20 \ (Answer)$$

Example (2): A man sold an item for $$Rs.350$$ and gained profit of $$Rs.150$$, then find the cost price of the item?

Solution: Given, profit = $$Rs.150$$, and $$SP = Rs.350$$, then.$$Profit \ or \ Gain = SP - CP$$ $$150 = 350 - CP$$ $$CP = Rs.200 \ (Answer)$$

Loss: If the Selling Price (SP) of an item is less than that of Cost Price (CP) of the item, then the seller will have Loss. $$Loss = CP - SP$$

Example (1): A Girl perchased an item for $$Rs.200$$, and sold it for $$Rs.150$$, then find the profit or loss of the Girl?

Solution: Given, $$CP = Rs.200$$, and $$SP = Rs.150$$

Here, selling price is less than the cost price of the item so there is a loss.$$Loss = CP - SP$$ $$Loss = 200 - 150$$ $$= Rs.50 \ (Answer)$$

Example (2): A women perchased an item for $$Rs.500$$ and sold with the loss of $$Rs.150$$, then find the selling price of the item?

Solution: Given, $$CP = Rs.500$$, and loss $$= Rs.150$$, then $$Loss = CP - SP$$ $$150 = 500 - SP$$ $$SP = Rs.350 \ (Answer)$$

Printed Price: This is the price printed or marked on the item. It is also known as MRP (Maximum Retail Price).

Note: In the case of discount, MRP is always treated as 100%.