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Simply we can say that, if the Selling Price is is more than the Cost Price we can Make Profit. or If the Cost Price is more than the Selling Price then we will end up with Loss.
Profit = Selling Price (S.P) - Cost Price (C.P)
Percentage of Profit / Loss is calculated on the cost price by the following formula
Profit Percent = (Profit / Cost Price) X 100
Similarly,
Loss = Cost Price (C.P) - Selling Price (S.P)
Loss Per Cent = (Loss / Cost Price) X 100
Some Important Points to Remember :
- Profit Or Loss Per Cent is always calculated on C.P and not in S.P
- Overhead expenses like Packaging, Transportation etc. are always added to the cost price to get the total C.P. and then profit per cent or loss per cent is calculated on this total cost price.
- When the C.P and the S.P are given for different number of articles, first of all find C.P and S.P of equal number of articles and then only calculate profit per cent or loss per cent.
Marked Price and Discount :
When we go to a shop, we find price tags attached to the goods. The original price written on the price tag is called the "Marked Price". Sometimes, a reduction or concession is given on some Goods. We call this reduction as "Discount" . In Business, Discount is to attract the customers. More the sale, More the Profit :) Discount is given directly in terms of Money or in terms of other attractive articles. Direct discount is given on the labelled price. Which is much more than the actual cost price the seller has to pay. It is calculated in percentage. Seller gets profit even after giving discount to you.
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ReplyDeleteGood,but please provide shortcuts for calculations
ReplyDeletePlz suggest shortcut
ReplyDeleteQ.a shopkeeper sold a TV set for Rs17940 with discount 8% and gained 19.6%.if no discount is allowed what will be gain percent