**Cost Price:**It is defined as the amount at which the product/article is bought or the amount which is invested to make a product.- The cost price is abbreviated as “
**CP**”.

- The cost price is abbreviated as “
**Selling Price:**It is defined as the amount at which the product/ article is sold.- The selling price is abbreviated as “
**SP**”.

- The selling price is abbreviated as “

**CONDITIONS:**

- Cost Price is less than selling price.
- C.P < S.P

- Cost price is more than the selling price.
- C.P > S.P

- Cost price is equal to the selling price.
- C.P = S.P

**Profit**

- Profit means gain in amount when any product is sold.
- When the cost price is less than the selling price then we earn profit.
- Profit is calculated by subtracting the cost price from the selling price.

**Example :**

The cost price of the article is Rs 55 and the selling price is Rs 65. Find the profit.

**Solution:**

The cost price is Rs 55.

The selling price is Rs 65.

Since, the selling price is more than the cost price then there is a profit.

Subtract 55 from 65 to get the profit.

65 – 55 = 10

Therefore, profit = Rs 10.

**Loss**

- Loss means losing an amount when any product is sold.
- When the cost price is more than the selling price then we suffer loss.
- Loss is calculated by subtracting the selling price from the cost price.

**Example : **The cost price of the article is Rs 100 and the selling price is Rs 85. Find the loss.

**Solution:**

The cost price is Rs 100.

The selling price is Rs 85.

Since, the selling price is less than the cost price then there is a loss.

Subtract 85 from 100 to get the loss.

100 – 85 = 15

Therefore, loss = Rs 15.

Admissions open for 2024-2025

Copyright @2024 | K12 Techno Services ®

ORCHIDS - The International School | Terms | Privacy Policy | Cancellation