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The terms profit and loss are used to judge whether or not a deal is profitable. These expressions are widely used in our daily lives. Profit is the difference between the selling price and the cost price when the selling price is higher than the cost price. The gap between the cost price and the selling price is referred to as a loss if the selling price is less than the cost price. The cost price of a product is the price at which it is purchased. The selling price is the price at which a thing is sold. In this essay, we will study more about profit and loss.
Formula for Profit and Loss Percent
Profit Formula: There is a profit in the transaction if the selling price of an item is higher than its cost price. The profit is calculated using the following formula:
Profit = Selling Price-Cost Price
Loss Formula: There is a loss in the transaction if the selling price of an item is less than the cost price. The following is the fundamental formula for determining the loss:
Loss = Cost Price-selling Price
How to derive the profit and loss formula?
You can simply calculate profit and loss if you understand the phrases “selling price” and “cost price.”
The cost price of an item is the price at which it is acquired.
The selling price is the price at which an object is sold.
Profit = Selling Price-Cost Price
Loss = Cost Price-selling Price
Usage of the Profit and Loss Formula in maths
Profit and loss are a fundamental mathematical idea that will serve you well throughout your life. Profit and loss are two concepts used to judge whether or not a trade is lucrative. In our daily lives, we commonly utilize these phrases. The difference between the selling price and the cost price is the easiest way to calculate profit and loss. There is a profit if the difference is positive, but there is a loss if the difference is negative. When the selling price is less than the cost price, the difference is referred to as a loss. The cost price of an item is the price at which it is purchased. The selling price of an item refers to the price at which it is sold.
Conclusion
Profit: When the selling price exceeds the cost price in a transaction, we have made a profit. Neil made a profit of 2 in the scenario above. Profit = Selling price – Cost price is the formula used to determine it. In the profit, the umbrella’s cost price was $8 and its selling price was $10. he made in the previous example may be calculated using the formula Profit = Selling price – Cost price. By replacing the variables, we get Profit = 10 – 8 = 2. As a consequence, he earns a profit of two.
Loss: When the cost price is higher than the selling price in a transaction, we lose money. For example, if a bag cost 20 and is sold for 17, we lost 3 on this transaction. Loss = Cost price is the formula for determining loss. – Purchase price. Because the bag’s Cost price is 20 and its Selling price is 17, the loss may be calculated using the following formula: Loss = Cost price – Selling price. We obtain Loss = 20 – 17 = 3 by substituting the variables. As a result, the transaction loses three points.
