- Cost Price is the price at which an item is purchased.
- Selling Price is the price at which an item is sold.
- If the Selling Price is more than the Cost Price, then there is Profit.
- If selling price is less than cost price, then there is Loss.
- Profit=Selling Price–Cost Price
- Loss= Cost Price–Selling Price
- Profit % = (Profit/Cost Price) X 100
- Loss % = (Loss/Cost Price) X 100
Example1. A book seller purchases a book for 110 rs and sells it for 123 rs. How much profit or loss he got?
Answer:
Profit of 13 Rs.
Cost price = 110 Rs
Selling price = 123 Rs
Profit = CP – SP = 123-110=13 Rs.
Example2. Raja buys a cycle for 1850 Rs and after some time sells it for 1752 Rs. How much Loss or Profit did he get?
Answer: Loss of 98Rs.
Cost price = 1850 Rs
Selling price = 1752 Rs
Loss = SP – CP = 1850-1752=98 Rs.
Example3. A person sells his book for 100 rs. and earns the profit of rs. 20. What percentage profit does he get?
Answer: 25%
Selling price = 100, Profit = 20
CP=SP-Profit= 100-20 = 80
Profit% = (Profit/CP) X 100 = (20/80) X 100 = 25%
Example4. Ramesh purchases a radio for 200 Rs. and sells it for 160 Rs. What percentage loss does he make?
Answer: 20%
Purchase price = 200
Selling price = 160
Loss=CP-SP = 200-160 = 40
Loss% = (Loss/CP) X 100 = (40/200) X 100 = 20%