ROFIT AND LOSS. PART
Terminology o COST PRICE: The price at which an article is purchased is called its cost price and denoted by CIP Ifan article is purchased for some amount and there is some additional expense on transportation, labour cost, Commission or repair charges etc, then it would be added in the cost price. o o
SELLING PRICE. The price at which an article is sold is called its selling price, denoted by
PROFIT OR GAIN If SP is greater than CP, in the Sailor is said to have a profit or gain. * Profit or gain - SP - CP . Profit%-(profit/CP)"100
LOSS. If the SP is less than the CP then the seller is said to have a loss Loss = CP-SP loss% = (loss/CP)*100 . .
MARKED PRICE. MRP of an article is known as marked price or labelled price or * listed price and denoted by MP DISCOUNT Made on the market price of an article is called discount. Discount- MP SP * Discount percent - (discount/MP)*100 When marked price and discount percentage is given then SP-MP"(100-discount%)/100
POINT TO REMEMBER. Profit and loss are always counted on CP . CP is always 100% in the case of profit and loss
OBSERVATION If 20% profit accrued on an article, it means . 100% represent CP. 120% represent SP. 20% represent profit. o o o
If 10% loss accrued on an article, it means 100% represent CP. 90% represent SP. 10% represent loss. o o
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