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1. Important Formulas - Profit and Loss
1. Cost price (CP) is the price at which an article is purchased.
2. Selling price (SP) is the price at which an article is sold.
3. If SP > CP, it is a profit or gain
4. If CP > SP, it is a loss.
5. Gain or Profit = SP – CP
6. Loss = CP - SP
7. Loss or gain is always reckoned on CP
8. Profit Percentage (Profit %) = ProfitCP×100=(SP - CP)CP×100
9. Loss Percentage (Loss %) = LossCP×100=(CP - SP)CP×100
10. In the case of a gain or profit,
SP=(100+Gain%)100×CP
CP=100(100+ Gain%)×SP
11. In the case of a loss,
SP=(100−Loss%)100×CP
2. CP=100(100−Loss%)×SP
12. If an article is sold at a gain of 20%, then SP = 120% of CP
13. If an article is sold at a loss of 20% then SP = 80% of CP
14. If an article is sold at a loss of 20% then SP = 80% of CP
15. If a person sells two items at the same price; one at a gain of x %
and another at a loss of x %, then the seller always incurs a loss
expressed as
Loss %=( Common Loss and Gain %10)2=(x10)2
16. If a trader professes to sell his goods at cost price, but uses false
weights, then
Gain%=[Error( True Value - Error )×100]%