Formulas of Profit and Loss

Cost Price

The amount paid to purchase an article or the price at which an article is made is known as cost price. It is abbreviated as C.P.
Generally, the overhead expenses are added to cost price but if overhead expenses are not added then, effective cost price = cost price + overhead expense
Overhead expense can be exportation charges, labor charges etc.

Selling Price

The amount at which an article is sold is known as selling price. It is abbreviated as S.P.

Following are the formulas of Profit and Loss

If S.P > C.P , then
It is the case of Profit.
1. Profit = S.P - C.P
2. S.P = Profit + C.P
3. C.P = S.P – Profit
4. Profit % = $\frac{\Pr ofit}{C.P}\times 100$

5. Profit = $\frac{C.P\times \Pr ofit\%}{100}$

6. S.P = $(\frac{100+\Pr ofit\%}{100})\times C.P$

7. C.P = $\frac{100\times S.P}{(100+\Pr ofit\%)}$

If C.P > S.P then
It is the case of Loss.
1. Loss = C.P – S.P
2. C.P = S.P + Loss
3. S.P = C.P – Loss
4. Loss % = $\frac{loss}{C.P}\times 100$

5. Loss = $\frac{C.P\times Loss\%}{100}$

6. S.P = $(\frac{100-Loss\%}{100})\times C.P$

7. C.P = $\frac{100\times S.P}{(100-Loss\%)}$


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