COST PRICE The amount paid to purchase an article or the price at which an article is made is known as its cost price.
SELLING PRICE The price at which an article is sold is known as its selling price. The selling price is abbreviated as S.P.
PROFIT If the selling price (S.P.) of an article is greater than the cost price (C.P.), the difference between the selling price and cost price is called profit.
Thus, if S.P. > C.P., then
Profit =S.P.-C.P.
S.P. = C.P. + Profit
C.P. = S.P.-Profit.
PROFIT PERCENTAGE The profit percent is the profit that would be obtained for a C.P. of Rs 100 i.e.,
Profit percent = Profit / C.P *100
Thus, in case of profit or gain (i.e., if S.P. > C.P.), we have
(i) Profit = S.P.-C.P.
(ii) S.P. = Profit + C.P
(iii) C.P. = S.P. -Profit.
(iv) Profit percent = Profit/C.P*100
(v) Profit = C.P.*Profit %/100
(vi) S.P. = C.P. + Profit
(vii) S.P = C. P. + Profit % * C.P /100
S.P. = ( 100+Profit % /100) * C.P
(viii) C.P. = 100* S.P / (100+Profit%)
Example : A shopkeeper buys a toy for Rs 250 and sells it for Rs 285. Find his gain and gain percent.
Solution :
C.P. of the toy = Rs 250
S.P. of the toy = Rs 285
Since S.P. > C.P. So, there is gain given by
Gain =S.P.-C.P.
Rs285—Rs250 = Rs35.
Gain% = (Gain/C.P*100)%
Gain% = \( (35/250*100)% = 14 % \)
Hence, Gain = \( Rs 35 and Gain % 14%. \)