Profit and Loss

Introduction

In our locality, we can find varieties professions. Every people involved in business wants to profit from their business. But is not sure that every business has profit some may go on the loss. Generally, business is the matter of profit and loss. In business, every people's motive is earning a profit. Here, cost price (C.P.) is the invested amount in business. Then Selling Price (S.P.) must be more than cost price to make a profit.

Profit

When the selling price is greater than the cost price i.e. S.P. > C.P. then, there is profit.

\(\therefore\) Profit = S.P. - C.P.

and Profit Percentage= \(\frac{Profit\; amount}{cost\;price\;(C.P.)}\) × 100%

Loss

When the selling price is less than the cost price i.e. S.P. < C.P. then, there is a loss.

\(\therefore\) Loss = C.P. - S.P.

and Loss Percentage = \(\frac{Loss\;amount}{cost\;price\;(C.P.)}\) × 100%

Some of the conclusion:

i) When S.P. > C.P., then

1. Profit = S.P. - C.P.
2. C.P. = S.P. - Profit
3. S.P. = C.P. + .Profit

ii) When S.P. < C.P., then

1. Loss = C.P. - S.P.
2. S.P. = C.P. - Loss
3. C.P. = S.P. + Loss

iii) Profit Percentage = \(\frac{Profit\;amount}{cost\;price\;(C.P.)}\) × 100% = \(\frac{S.P. - C.P.}{C.P.}\) × 100%

iv) Loss Percentage = \(\frac{Loss\;amount}{cost\;price\;(C.P.)}\) × 100% = \(\frac{C.P. - S.P.}{C.P.}\) × 100%

Calculation of SP and CP when profit or loss percentage are given:

i) When CP and Profit percent is given, then SP = \(\frac{100 + P%}{100}\) × CP

ii) When CP and Loss percent is given, then SP = \(\frac{100 - L%}{100}\) × CP

iii) When SP and Profit percent is given, then CP = \(\frac{SP × 100}{100 + P%}\)

iv) When SP and Loss percent is given, then CP = \(\frac{SP × 100}{100 - L%}\)

We can solve the profit and loss related sums using percentage as well as unitary method.