Profile
Settings
Refer your friends
Sign out
Cost Price Formulas with solved examples
The cost price formula is really important in everyday life where it helps the sellers to calculate their profit/loss.
The total amount of money that is spent by the producer/trader to manufacture or acquire the goods without any added profit is known as Cost Price.
Depending upon the information available, there are different formulas for calculating the cost price:
When the Selling Price and the amount of profit gained or loss incurred is given
Cost Price = Selling Price – Profit
OR
Cost Price = Selling Price + Loss
When the Selling Price and percentage of profit/loss is given
Cost Price = (100/ (100 + profit%)) x Selling Price
OR
Cost Price = (100/ (100 – Loss%)) x Selling Price
Solved Examples
Question 1. Find the cost of manufacturing a toy if the selling price of the toy is Rs 500 and the profit made by the manufacturer is Rs 150 using the formula.
Solution: It is given that the selling price is Rs 500 and the Profit gained amounts to Rs 150
Putting the values in the Cost price formula i.e., Cost Price = Selling Price – Profit, we get
Cost Price = 500 – 150 or Rs 350
Question 2. Find the selling price of a good if its cost price is given to be Rs 360 and the loss suffered amounts to Rs 90 using the formula.
Solution: It is given that the cost price is Rs 360 and the loss suffered amounts to Rs 90
Putting the values in the Cost price formula i.e., Cost Price = Selling Price + Loss, we get
360 = Selling Price + 90
Or 360 – 90 = Selling Price
Or Selling Price = Rs 270
Question 3. Find the Cost price of a dressing table if its selling price is given to be Rs 2000 and the percentage of loss incurred is 5%.
Solution: It is given that the selling price is Rs 2000 and the loss percentage is 5%
Putting the values in the Cost price formula i.e.,
Cost Price = (100/ (100 – Loss%)) x Selling Price
We get,
Cost Price = (100/ (100 -5)) x 2000
Or Cost Price = (100/ 95) x 2000
Or Cost Price = 1.05 x 2000
Or Cost Price = Rs 2105.26
