Profit and Loss
Profit and loss involves understanding the relationship between cost price (CP), selling price (SP), and additional expenses. Let's see some examples:
(1) John bought a laptop for Rs. 800 and sold it for Rs. 950
(2) Sarah bought stocks for Rs. 2000 and sold them for Rs. 1800
(3) Mike bought a phone for Rs. 400 and sold it for Rs. 400
(4) Emma bought a car for Rs. 25,000, spent Rs. 2000 on repairs, and sold it for Rs. 30,000
We have:
Simple Profit/Loss =
When there are overhead expenses (like repairs, transportation, etc.), they must be added to the
Thus, Total Cost = Cost Price + Overhead Expenses
Actual Profit/Loss =
Meanwhile:
Profit % =
Loss % =