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# Profit and Loss

## some important definitions

• Cost price(C.P): Price at which an item is purchased.

• Selling price(S.P): Price at which an item is sold.

• Profit: When the selling price is greater than the cost price, it is called profit.

• Loss: When the selling price is less than the cost price, it is called as loss.

• Profit or loss percent: Profit or Loss after selling an item of Rs. 100(C.P).

• Discount: Discount is the reduction in the market price.

• Market Price: Retailer marks the price on a label and attaches it to the articles.

Profit or Gain = selling price(S.P) - cost price(C.P)

## Example:

S.P = 150, C.P = 20

Profit OR Gain = (150-120) = 30

Loss = Cost price(C.P) - Selling price(S.P)

## Example:

C.P = 100, S.P = 90

Loss = (100-90) = 10

Note: Profit or Loss percent is always calculated on cost price(C.P).

## Formulas:

 (i) % of Profit = Profit x 100 Cost price
 (ii) % of Loss = Loss x 100 Cost price

(iii) In case of profit:

 S.P = C.P 100 + % of profit 100
 C.P = S.P x 100 100 + % of profit

(iv) In case of Loss:

 S.P = C.P 100 - % of Loss 100
 C.P = S.P x 100 100 - % of Loss