Profit & Loss
To understand above two terms first we should understand three important terms
that are
cost price
market price and
sales price
Cost price:-total cost to make the product[total cost incurred by the person in acquiring product]
Market Price:-market price is nothing but price which is labelled on the product or quoted
Sales Price:-Sales Price is nothing but,price of actual transaction
here one important term take place that is discount
Discount:- Some rupees are reduced by Sellers is discounts to customer.
Relations
1)Discount=Selling Price-Market Price
2)Discount is always calculated on the basis of market price(Remember)
Now ,About Profit & Loss
Profit:- If Selling price is higher than cost price, difference of them is called Profit
Loss:- If Selling price is lower than cost price, different of them called as Loss.
Formulas:-
1)Profit=Sales Price-Cost Price
2)Loss=Cost Price-Selling Price
3)Discount=Market Price-Selling Price
4) Profit(in %)=
[(Selling Price-Cost Price)/CostPrice]*100
5)Loss(in %)=
[(Cost Price-Selling Price)/Cost Price]*100
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