Profit and Loss on CP and SP: Basic Cases Concept: A profit is the difference between the selling price and the cost price of an item. A loss is the dif...
Profit and Loss on CP and SP: Basic Cases
Concept:
A profit is the difference between the selling price and the cost price of an item. A loss is the difference between the cost price and the selling price of an item.
Case 1: Selling Price Greater than Cost Price
The profit is the difference between the selling price (S) and the cost price (C): S - C.
If the profit is positive, it means the item was sold for more than its cost price, resulting in a profit.
Example: If an item is purchased for ₹100 and sold for ₹120, the profit would be ₹20.
Case 2: Selling Price Lower than Cost Price
The loss is the difference between the cost price (C) and the selling price (S): C - S.
If the loss is negative, it means the item was purchased for less than its cost price, resulting in a loss.
Example: If an item is purchased for ₹150 and sold for ₹100, the loss would be ₹50.
Case 3: Selling Price and Cost Price Equal
The profit and loss both equal zero.
This means that the item was bought and sold at the same price, resulting in neither a profit nor a loss.
Example: If an item is purchased for ₹100 and sold for the same price, the profit and loss would both be zero.
Summary:
A profit is when the selling price is greater than the cost price.
A loss is when the cost price is greater than the selling price.
A profit is always positive, while a loss is always negative.
A profit and loss of zero is when the item is bought and sold at the same price