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Comparing Quantities

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7th class > Comparing Quantities > Prices Related to an Item or Buying and Selling

Prices Related to an Item or Buying and Selling

The buying price of any item is known as its cost price. It is written in short as CP.

The price at which you sell is known as the selling price or in short SP.

What would you say is better, to you sell the item at a lower price, same price or higher price than your buying price? You can decide whether the sale was profitable or not depending on the CP and SP.

If CP < SP then you made a profit = SP – CP.
If CP = SP then you are in a no profit no loss situation.
If CP > SP then you have a loss = CP – SP
Let us try to interpret the statements related to prices of items.
A toy bought for ₹ 72 is sold at ₹ 80.
A T-shirt bought for ₹ 120 is sold at ₹ 100.
A cycle bought for ₹ 800 is sold for ₹ 940.
Let us consider the first statement.
The buying price (or CP) is ₹ 72 and the selling price (or SP) is ₹ 80. This means SP is more than CP. Hence profit made = SP – CP = ₹ 80 – ₹ 72 = ₹

Profit or Loss as a Percentage

The profit or loss can be converted to a percentage. It is always calculated on the CP.

For the above examples, we can find the profit % or loss %.

Example 10

Let us consider the example related to the toy. We have CP = ₹ 72, SP = ₹ 80, Profit = ₹ 8. To find the percentage of profit.

Finding percentage of profit

  • Profit % = ( / ) x 100
  • Using the formula, we get percent of profit = %
  • Substituting the values
  • Therefore, We have found the answer.

EXAMPLE 11

The cost of a flower vase is ₹ 120. If the shopkeeper sells it at a loss of 10%, find the price at which it is sold.

Finding the S.P of vase

  • Loss % = ( / ) x 100
  • Using the formula, we get loss = Rs.
  • Substituting the values
  • Now, we know: Loss = -
  • Therefore SP = CP – Loss = Rs.
  • Substituting the values
  • We have found the answer.