Formulae for Profit and Loss

IMPORTANT FACTS

• 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 prices, 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.

IMPORTANT FORMULAE

• Gain = (S.P.) - (C.P.)
• Loss = (C.P.) - (S.P.)
• Loss or gain is always reckoned on C.P.
• Gain Percentage: (Gain %)

  Gain % =		Gain x 100
  		C.P.

• Loss Percentage: (Loss %)

  Loss % =		Loss x 100
  		C.P.

• Selling Price: (S.P.)

  SP =		(100 + Gain %)	x C.P
  		100

• Selling Price: (S.P.)

  SP =		(100 - Loss %)	x C.P.
  		100

• Cost Price: (C.P.)

  C.P. =		100	x S.P.
  		(100 + Gain %)

• Cost Price: (C.P.)

  C.P. =		100	x S.P.
  		(100 - Loss %)

• If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.
• If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.
• 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 %		2	=		x		2	.
  		10					10
• If a trader professes to sell his goods at cost price, but uses false weights, then

  Gain % =		Error	x 100	%.
  		(True Value) - (Error)