*IMPORTANT** FAC**TS*

*IMPORTANT*

**Cost Price**:

The price, at which an article is purchased, is called its *cost price*, abbreviated as *C.P.*

*selling price:*

The price, at which an article is sold, is called its *selling prices*, abbreviated as *S.P.*

*Profit or Gain:*

If S.P. is greater than C.P., the seller is said to have a *profit* or *gain*.

*Loss:*

If S.P. is less than C.P., the seller is said to have incurred a *loss*.

*IMPORTANT FORMULAE:*

**1.In case of profit,**

profit = selling price – cost price

selling price = cost price + profit

cost price = selling price – profit

**2.In case of loss,**

loss = cost price – selling price

selling price = cost price – loss

cost price = selling price + loss

**3. Profit percentage and loss percentage**

Profit percentage and loss percentage are always calculated on cost price unless otherwise stated.

In case of profit,

profit percentage=profit×100cost priceprofit percentage=profit×100cost price

selling price=cost price+cost price×profit percentage100=cost price(100+profit percentage)100selling price=cost price+cost price×profit percentage100=cost price(100+profit percentage)100

cost price=100×selling price100+profit percentagecost price=100×selling price100+profit percentage

Example: If an object is sold at a profit of 20%,20%,

selling price =120%=120% of cost price

In case of loss,

loss percentage=loss×100cost priceloss percentage=loss×100cost price

selling price=cost price−cost price×loss percentage100=cost price(100−loss percentage)100selling price=cost price−cost price×loss percentage100=cost price(100−loss percentage)100

cost price=100×selling price100−loss percentagecost price=100×selling price100−loss percentage

Example: If an object is sold at a loss of 20%20%

selling price =80%=80% of cost price

**4. Selling at same price**

net profit percentage =100(x1+x2)+2x1x2200+x1+x2=100(x1+x2)+2x1x2200+x1+x2

Note:

(a) for loss, use -sign for x1x1 and/or x2x2 as applicable.

(b) If the formula evaluates to a -ve value, it means there is a net loss

**EXAMPLES ON PROFIT AND LOSS**

2.The cost price of 20 articles is the same as the selling price of |
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Let C.P. of each article be Re. 1 C.P. of S.P. of Profit = Rs. (20 –
2000 – 100 125
## 1.If selling price is doubled, the profit triples. Find the profit percent.## 2. A vendor bought toffees at 6 for a rupee. How many for a rupee must he sell to gain 20%? |