# Formulas of Profit and Loss

Formulas of profit and loss are given below.

When the Selling Price (SP) is greater than Cost Price (CP) the man makes a Profit or Gain.

Selling Price (SP) > Cost Price (CP) → Profit or Gain

Profit = Selling Price (SP) – Cost Price (CP)

If profit % is required to find then,

Profit % = (Profit/Cost Price) × 100

When the Selling Price (SP) is less than Cost Price (CP) the man suffers a Loss.

Selling Price (SP) < Cost Price (CP) → Loss

Loss = Cost Price (CP) - Selling Price (SP)

Depending on the formulas of profit and loss let us consider some examples:

1. Mr. Smith bought a book for $85 and sold it for sold it for$ 115. Find his profit or loss percent.

Solution:

Cost Price (CP) = $85; Selling Price (SP) =$ 115

Since SP > CP,

Therefore, Mr. Smith makes a profit.

Profit = Selling Price (SP) – Cost Price (CP)

= 115 – 85

= $30 Therefore, profit % = (Profit/Cost Price) × 100 = (30/85) x 100 = 35.29 % Answers: 35.29 % 2. Mr. Brown bought a TV for$ 5800 and sold it for sold it for $7000. Find his profit or loss percent. Solution: Cost Price (CP) =$ 5800;

Selling Price (SP) = $7000 Since SP > CP, Therefore, Mr. Brown makes a profit. Profit = Selling Price (SP) – Cost Price (CP) = 7000 – 5800 =$ 1200

Therefore, profit % = (Profit/Cost Price) × 100

= (1200/5800) x 100

= 20.69 %

3. Robert bought pencils for $150.As they were of bad quality, he had to sell them for$ 127. Find his loss or gain percent.

Solution:

Cost Price (CP) = $150, Selling Price (SP) =$ 127

Since SP < CP,

Therefore, Robert suffers a loss.

Loss = Cost Price (CP) – Selling Price (SP)

= 150 – 127

= $23 Therefore, loss % = (Loss/CP) × 100 = (23/150) × 100 = 15.33% Answers: 15.33 % 4. Jack bought a pairs of shirt for$ 125 and sold them for $108. Find his loss or gain percent. Solution: Cost Price (CP) =$ 125,

Selling Price (SP) = $108 Since SP < CP, Therefore, Jack suffers a loss. Loss = Cost Price (CP) – Selling Price (SP) = 125 – 108 =$ 17

Therefore, loss % = (Loss/CP) × 100

= (17/125) × 100

= 13.6 %

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