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) |