Profit & Loss Important formulas:
Cost Price: The price for which an article is purchased is called the Cost Price (C.P.)
Selling price: The price at which an article is sold is called the Selling Price (S.P.)
Market Price: The price for which an article can be bought or sold i.e. the price at which the article is available to the market.
Profit or Gain: The difference between the selling price and the cost price (when S.P. is more than C.P) is called the Profit.
Loss: The difference between the cost price and selling price (when C.P. is more than S.P.) is called the Loss.
Important Point to be Remember: The Loss or Gain is always Computation on the cost price only.
If, S.P = Selling Price, C.P = Cost Price and M.P = Market Price,Then the important formulas for profit & loss are as bellow: