Important points and formulas
- Cost price(C.P)is the price at which a particular article is bought.
- Selling price(S.P) is that price at which a particular item is sold.
- Profit=S.P - C.P
- Loss =C.P- S.P
- Profit%=(profit*100)/C.P
- Loss%=(loss*100)/C.P
- the profit or loss percentage is always calculated based on C.P
- The overhead expenses are added to C.P.
- If A sold an article at a profit R1% to B.B sold it to C at a profit of R2% and C sold it to D at a profit of R3%.Then money spent by D for buying article C.P of D = C.P of A * (1+ R1/100)(1+ R2/100)(1+ R3/100).
- If there are two successive profits (R1% and R2%) obtained on an article then total profit%=(R1+R2+ R1R2/100).
- If a seller mark P% above cost price and gives a discount of Q%,the final Profit/loss %=P-Q-(PQ/100).
- Discount percentage is calculated on the marked price(M.P)
- Discount%= (Discount/M.P)*100
- Cost Price= [(100+Gain%)/(100-Discount%)]*100
