Profit & Lose : Basic Terms

Cost Price (CP) : The price at which an item is purchased/bought.


Example: A shopkeeper buys a mobile for ₹10,000.


CP = ₹10,000


Selling Price (SP) : The price at which an item is sold.


Example: He sells the mobile for ₹12,000.


SP = ₹12,000


Profit / Gain : When SP > CP, there is a Profit (Gain).


Formula: Profit = SP − CP


Example: CP = ₹10,000, SP = ₹12,000


Profit = 12,000 − 10,000 = ₹2,000


Loss : When CP > SP, there is a Loss.


Formula: Loss = CP − SP


Example: CP = ₹10,000, SP = ₹8,000


Loss = 10,000 − 8,000 = ₹2,000


Note: Selling Price − Cost Price = Profit, Cost Price − Selling Price = Loss











 










 

🌐