﻿ Profit-Loss - Facts and Formula

# Profit & Loss - Facts and Formula

## COST PRICE (CP)

THE PRICE AT WHICH ARTICLE IS PURCHASED

## SELLING PRICE (SP)

THE PRICE AT WHICH ARTICLE IS SOLD

## PROFIT OR GAIN

IF SELLING PRICE (SP) IS GREATER THAN COST PRICE (CP), THE SELLING PRICE IS SAID TO HAVE PROFIT OR GAIN.

## LOSS

IF SP IS LESS THAN CP ,THE SELLER IS SAID TO INCURRED 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 CP BUT USES FALSE WEIGHTS,THEN

GAIN=[ERROR/(TRUE VALUE)-(ERROR)*100]% SOLVED PROBLEMS