## Eduwhere Concept: Profit & Loss

- Neha Gore
- last edited by Neha Gore

Profit & Loss plays a key role in the realm of economics and accounting. Questions related to Profit & Loss are likely to appear in your upcoming examination. Here are some basic terms and formulae involved in Profit & Loss.

*Profit = S P – C P*

*Loss = C P – S P*

*Profit percentage = [Profit/cost price] × 100*

*Loss percentage = [loss/cost price] × 100*

*Loss or gain is always calculated over CP.*

* %Gain = {(Gain*100)/CP}*

* %Loss = {(Loss*100)/CP}*

## Cost Price:

The price at which the article is purchased is called the Cost Price.

Take a look at some important formulae related to Cost Price:

*C P = [100/ (100 + gain%)]×S P = [100/ (100 + loss%)]×S P*

*CP = {100/(100 %Gain)}*SP*

* CP ={100/(100-%Loss)}*SP*

## Selling Price:

The price at which the article is sold to the buyer is called the Selling Price.

*S P = (100 +k) % of C P; where profit = k% of C P.*

*S P = (100 – k)% of C P; where loss = k% of the C P.*

*S P = [(100 + gain%)/100]×C P = [(100 + loss%)/100]×C P*

*S P = {(100 %Gain)/100}*CP*

*S P = {(100-%Loss)/100}*CP*

## Listed Price:

The suggested retail price by the manufacturer is referred to as Listed Price.

## Marked Price:

The price on the label of an article/ product is called the marked price. Marked price or List price.

*Marked Price = C P + Markup*

*M P (Marked Price) = C P + (%markup on C P)*

*When Discount is offered, M.P. > S.P.*

*When Discount is not offered, M.P. < S.P.*

*Discount = Marked Price – Selling Price*

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