PROFIT AND LOSS

IMPORTANT FACT

• Cost Price (CP): The price at which article is purchased.abbrevated as c.p.
• Selling Price (SP): The price at which article is sold.
• Profit or Gain: If sp is greater than cp,the selling price is said to have profit or gain.
• Loss: If spis less than cp,the seller is said to incured a loss.

FORMULA

1. GAIN=(SP)-(CP).
2. LOSS=(CP)-(SP).
3. LOSS OR GAIN IS ALWAYS RECKONED ON CP
4. GAIN %={GAIN*100}/CP.                                                                             
5. LOSS%={LOSS*100}/CP.
6. SP={(100+GAIN%) /100}*CP.
7. SP={(100-LOSS%)/100}*CP.
8. {100/(100+GAIN%)} *SP
9. CP=100/(100-LOSS%)}*SP
10. If the article is sold at a gain of say 35%, then sp =135% of cp
11. If a article is sold at a loss of say 35%. Then sp=65% of cp.
12. When a person sells two items,one at a gain of x% and other at a loss of x%.then the seller always incures a loss given: {LOSS%=(COMON LOSS AND GAIN ) 2}/10.=(X/10) ^2
13. If the trader professes to sell his goods at CPbut uses false weights,then  GAIN=[ERROR/(TRUE VALUE)-(ERROR)*100]%