3. A shopkeeper buys goods at a price
and then sells them to us usually at a
higher price.
The price which a shopkeeper pays to
buy the goods is the cost price (C.P.).
The price at which a shopkeeper
sells the goods to his customer is
the selling price (S.P.).
(Contd…)
4. If the shopkeeper sells the goods at a
price higher than the cost price he makes
a gain or profit.
If the shopkeeper sells the goods at a price
lower than the cost price he suffers a loss.
5. When selling price is greater than the cost price
the person will earn a profit.(S.P. C.P.)
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Forae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
>
Selling Price - Cost Price = Profit
When cost price is greater than the selling price
the person will have a loss. (C.P. S.P.)
>
Cost Price - Selling Price = Loss
With the help of above formulae we can calculate either
selling price, cost price, profit or loss.
When there is a profit:
Selling Price = Cost Price + Profit
Cost Price = Selling Price - Profit
When there is a loss:
Selling Price = Cost Price - Loss
Cost Price = Selling Price + Loss
6. Often before selling the goods a shopkeeper
spends money in
transporting goods
keeping goods in good condition
Storing the goods in godowns
The money he spends on the above are
called overhead expenses.
The shopkeeper adds these overhead expenses
to the cost price before he sells the goods at the
selling price.
Total Cost Price = Original Cost Price + Overhead
expenses
Therefore,
7. Q.1. Juhi bought a windchime for
Rs 385 from Archies Gallery. Kim
liked it a lot and asked her to sell
it. Jane sold it to Kim for Rs 415.
Did Juhi make profit or loss
in this transaction?
Calculate the profit or loss.
Cost Price of a wind chime = Rs 385
Selling Price of a wind chime = Rs 415
Selling Price > Cost Price , therefore Juhi made a profit.
Selling Price – Cost Price = Profit
Rs 415 – Rs 385 = Rs 30
Ans: Therefore the profit earned by Juhi is Rs 30.
8. Q.2. Naved bought an umbrella for Rs. 137. After 2
years he sold it for Rs 95.
Did Naved make a profit or had
a loss?
Calculate the profit or loss?
Cost Price of the umbrella = Rs 137
Selling Price of the umbrella = Rs 95
Cost Price > Selling Price , therefore Naved had a loss.
Cost Price – Selling Price = Loss
Rs 137 – Rs 95
Ans: Therefore Naved suffered a loss by selling his
old umbrella.
= Rs 42
9. cost price, if selling price of an old bicycle is Rs
1975 and the loss on it is Rs 275?
Cost Price = Selling Price + Loss
= Rs 1975 + Rs 275
= Rs 2250
Ans: The cost price of the bicycle is Rs 2250
selling price, if cost price of a flower vase is Rs 516
and the profit made on it is Rs 96?
Selling Price = Cost Price + Profit
= Rs 516 + Rs 96
= Rs 612
Ans: The selling price of the flower vase is Rs 612.
10. Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Important Formulae Important Formulae
Percentage profit or percentage loss is calculated on the
assumption that the cost price is Rs 100.
% profit and % loss is always calculated on the cost price.
% of profit =
% of loss =
Profit
C.P.
Loss
C.P.
´ 100
´ 100
We can calculate either selling price, cost price, profit or loss
by using “comparison of ratios method”.
Ratio between the cost prices = Ratio between the profits.
Ratio between the cost prices = Ratio between the losses.
Ratio between the cost prices = Ratio between the selling prices.
11. Q.1. Tanya bought a Parker pen for Rs 40 and
sold it for Rs 48. Calculate
the profit or loss.
the % profit or % loss.
Cost Price of the pen = Rs ___
Selling Price of the pen = Rs ____
Profit = Rs ____– Rs ____
= Rs ___
(Contd…)
Comparison of Ratios Method:
40
48
48 40
8
Tanya got a profit of Rs 8 on the cost price of Rs
40.
12. When the cost price of the pen is Rs 40 the profit made on
it is Rs 8.
When we assume that the cost price is 100, then let the
profit made on it be x.
We can calculate % profit by comparing ratios of two cost
prices with the ratios of two profits.
Ratio between the cost prices = Ratio between the profits
1 0 0 : 4 0 = x : 8
Or = 100
40
(By cross multiplication)
Or 1 0 0 =
40
x8
x8
Or x ´ 40 = 100 ´ 8 (Contd…
13. Or x ´ 40 = 100 ´ 8
Or x =
Or x =
100 ´ 8
40
20%
5
1
1
20
Ans: Therefore, Tanya made a profit of 20% by
selling the Parker pen.
14. Original Cost Price = Rs 1730
Overhead expenses = Rs 270
Total C.P. = Original C.P. + Overhead expenses
= Rs 1730 + Rs 270
= Rs 2000
(Contd…)
Q.1. Mrs. Khanna bought a cupboard for
Rs 1730. She spent Rs 270 on its
transportation. After a few months
she sold it for Rs 2500. Calculate
the profit or loss.
% profit or % loss.
Therefore, the total cost price of the cupboard is Rs 2000.
15. Selling price = Rs 2500
Selling Price – Cost Price = Profit
Rs 2500 – Rs 2000 = Rs 500
Profit = Rs 500
Mrs. Khanna made a profit of Rs 500 on the cost price of
Rs 1730. Let x is the profit on cost price of Rs 100.
Ratio between the C.P. = Ratio between the profits
(Contd…)
10 0 : 2 0 0 0 = x : 500
1 0 0 =
2000
x
500
16. 1 0 0 =
2000
x
500
1 25
100 x 500
2000
x =
200
= 25
2
10 50
20
x = 25%
1
Ans: Therefore, Mrs. Khanna made a profit of 25%.
17. Q.1. Mr. Raheja bought a camera at Rs
1600.
After one year he paid Rs. 400 on its
repair
and sold it at 5% loss. Calculate the
selling Origina pl rciocset opfr itchee o cf atmhee rcaa.mera = Rs 1600
Overhead expenses (on repair) = Rs 400
Total cost price = Original cost price + Overhead Expenses
= Rs 1600 + Rs 400
Total cost price = Rs 2000
Mr. Raheja had a loss of 5% by selling the camera.
It means that if Rs 100 be the cost price, the selling
price is Rs 100 – Rs 5 = Rs 95
(Contd…)
18. Let x be the S.P. of the camera.
The ratio between the S.P. = The ratio between the
C.P.
= 2000
100
x
95
x ´ 100 = 2000 ´ 95
20
x 2000 ´ 95 = 100
= 20 ´ 95
1
x = Rs 1900
Ans: Therefore, selling price of camera was Rs 1900.
19. Selling Price of 1 box of oranges = Rs 88
Selling Price of 10 boxes of oranges = Rs 88
´ 10
Selling Price of 10 boxes of oranges = Rs 880
(Contd…)
Q.1. Rima bought 10 boxes of oranges
from Nagpur. She spent Rs 50
towards transport. She sold all
the 10 boxes of oranges at
Rs 88 per box and earned a profit
of t h1e0 %co.s Ct aplrciuclea otef each box of oranges?
20. Rima made a profit of 10% by selling oranges at Rs 88
per box.
It means that if Rs 100 be the cost price then, selling
price is Rs 100 + Rs 10 = Rs 110.
Rs 880 is the selling price of 10 boxes.
Let x be the cost price of the 10 boxes of oranges.
Ratio between the C.P. = Ratio between the S.P.
x : 1 0 0 = 880 : 110
= 880
110
x
100
or x ´ 110 = 880 ´ 100 (By cross
multiplication)
21. x
=
80 10
880
110
´ 100 x = Rs 800
11
1
Cost price of 10 boxes = Rs 800
Rima spent Rs 50 on transportation, therefore the original
cost price will be calculated as follows:
Total cost price = Original cost price + Overhead expenses
Original cost price = Total cost price - Overhead expenses
= Rs 800 - Rs 50
= Rs 750
Cost price at which Rima bought 10 boxes of oranges is Rs 750.
75
Cost price at which Rima bought 1 box = Rs 750
10 1
= Rs 75
Ans: Therefore the cost price of each box of oranges is Rs 75.
22. Test Yourself
Jill brought home a poster from
her trip to Himachal Pradesh.
She had paid Rs 25 for it. Lina
saw the poster and liked it. Jill
gave it to Lina for Rs 35.
Can you state?
• For how many rupee did Jill buy the poster ?
Ans: Rs 25
• For how many rupee did Jill sell the poster to
Lina ?
Ans: Rs. 35
• Did Jill make a profit on her transaction, or suffer
a loss?
Ans: Jill made a profit on her transactions.
23. Test Yourself
Complete the table given below:
175 158 Loss 17
1139 1082 Loss 57
1687 1709 Profit 122
Item
C.P.
(Rs.)
S.P.
(Rs.)
Amount
(Rs.)
Profit / Loss
(Rs.)
24. 1.The money at which a shopkeeper buys certain goods is
called the cost price of the goods.
2. The money at which a shopkeeper sells the goods
is called the selling price of the goods.
3.Total cost price = Original cost price + Overhead Expenses
4. Selling Price - Cost Price = Profit
5. Cost Price - Selling Price = Loss
6. Selling Price = Cost Price + Profit
7. Cost Price = Selling Price - Profit
8. Selling Price = Cost Price - Loss
9. Cost Price = Selling Price + Loss
25. 11. % of loss =
Loss
C.P.
´ 100
10. % of profit =
Profit
C.P.
´ 100
12. Ratio between the cost prices = Ratio between the
profits.
13. Ratio between the cost prices = Ratio between the
losses.
14. Ratio between the cost prices = Ratio between the selling
prices.
