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IMPORTANT FACTS

Cost Price:

The price, at which an article is purchased, is called its cost price, abbreviated as C.P.

Selling Price:

The price, at which an article is sold, is called its selling prices, abbreviated as S.P.

Profit or Gain:

If S.P. is greater than C.P., the seller is said to have a profit or gain.

Loss:

If S.P. is less than C.P., the seller is said to have incurred a loss.

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IMPORTANT FORMULAE

1. Gain = (S.P.) - (C.P.)

   S.P > C.P
   

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2. Loss = (C.P.) - (S.P.)

   C.P > S.P
   

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3. Loss or gain is always reckoned on C.P.

   
   

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4. Gain Percentage: (Gain %)

   
   Gain % =
   Gain x 100/C.P



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5. Loss Percentage: (Loss %)

   
   Loss % =
   Loss x 100/C.P



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6. Selling Price: (S.P.)

   
   S.P = [
   (100 + Gain%)/100
   x C.P]



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7. Selling Price: (S.P.)

   
   S.P = [
   (100 - Loss%)/100
   x C.P]



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8. Cost Price: (C.P.)

   
   C.P = [
   100/(100 + Gaim%)
   x S.P]



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9. Cost Price: (C.P.)

   
   C.P = [
   100/(100 - Loss%)
   x S.P]



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10. If an article is sold at a gain of say 22%, then S.P. = 122% of C.P.

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11. If an article is sold at a loss of say, 25% then S.P. = 75% of C.P.

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12. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:

    
    Loss% = [
    Common Loss and Gain%/10
    ]² = (
    x/10
    )²



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13. If a trader professes to sell his goods at cost price, but uses false weights, then

    
    Gain% = [
    error/(true value) - (error)
    x 100]%

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