**Cost Price**

The price at which an article is purchased, is called cost price (CP).

**Overhead Charges**

When an article is purchased, there are some expenses like labour, maintenance etc, these charges are

called as overhead charges. These charges are always added in the cost price.

**Actual cost price = cost price + overhead charges.**

**Selling Price**

The price at which an article is sold, is called selling price (SP). Profit If selling price of an article is

more than its cost price, then there will be a profit.

**Profit = SP – CP**

**Loss**

If selling price of an article is less than its cost price, then there will be a loss

**Loss = CP – SP**

Profit & Loss are always calculated on cost price.

**Marked Price**

The price printed on the article is known as marked price (MP).

**Discount**

The reduction in the price of an article by shopkeeper to attract his customers, is called discount. It is always calculated on marked price

**Discount = Marked Price – Selling Price**

### Basic Formula

**Ex: A man purchased a toy for 25 and sold it for 30. The profit % is**

(a) 5%

(b)2.5%

(c) 20%

(d) 10 %

## Important Formulae

### Formula 1

If an article is sold for Rs. A at a profit (or a loss) r %, then to get a profit (or loss) of R %, the selling price would r % then to get a be

**Ex: A person wanted to sell his goods at a profit of 20%, but actually has sold it for 480 Rs. at a loss of 20%, The price at which it has to be sold to get a profit of 20%, will be**

(a)720

(b)840

(c)600

(d) 700

### Formula 2

If by selling any two articles at same price, there is a profit of r % on one and a loss of r % on the other article. There is always a loss of

**Ex:A man sold two watches, each for 495. If he gained 10% on one watch and suffered a loss of 10% on the other, then what is the loss or gain percentage in the transaction?**

(a)1 % gain

(b)1 % loss

(c)Neither loss nor gain

(d) 0.9 % loss

### Formula 3

**Ex.If CP of 15 articles is equal to SP of 12 articles, then profit % will be**

(a)15 %

(b) 12.5 %

(c) 25 %

(d) 38.8 %

### Formula 4

A seller sells his goods on CP but uses y gm weight in the place of x gm weight, then profit %

**Ex. A dishonest dealer professes to sell his goods at cost price but uses a weight of 960 gm for 1 kg weight. What is his gain percentage?**

### Formula 5

**Ex. What will be a single equivalent discount for successive discounts of 10 % and 5 % on marked price of an article?**

(a)15 %

(b) 14.5 %

(c) 35 %

(d) 38.8 %

### Formula 6

**Ex.What is the single equivalent discount for successive discount of 10 %, 20 % and 15 % on marked price for motor bike?**

(a)15 %

(b) 12.5 %

(c) 35 %

(d) 38.8 %

### Formula 7

**Ex. ****If a person marked the price 25 % above its cost price and allows a discount of 10%, the profit percentage will be**

(a)15 %

(b) 12.5 %

(c) 35 %

(d) 18 %