Definitions [1]
- Cost Price (C.P.): The amount for which an article is bought is called its Cost Price (C.P.).
- Selling Price (S.P.): The price at which a product is sold is known as its selling price (S.P.).
- Profit or Gain: When the S.P. is more than the C.P., then there is a profit or gain.
- Loss: When the S.P. is less than the C.P., then there is a loss.
- Discount: A Discount is the reduction given on the marked price of an article by the seller, usually to attract customers.
- Marked Price (M.P.): Marked Price (also called Tag Price) is the price printed or written on an article by the shopkeeper, which is usually higher than the cost price
Formulae [2]
- Profit = Selling Price - Cost Price, which means CP < SP.
- Loss = Cost Price - Selling Price, which means CP > SP.
- Selling Price = Marked Price – Discount
- Discount% = `"Discount"/"Marked Price"` × 100%
Profit = Selling Price - Cost Price, which means CP < SP.
Profit Percent = `"Profit"/"Cost Price" xx 100`.
Loss = Cost Price - Selling Price, which means CP > SP.
Loss Percent = `"Loss"/"Cost Price" xx 100`.
