EXAMSPIRE: Profit and loss formulas and shortcuts

Important points and formulas

Cost price(C.P)is the price at which a particular article is bought.
Selling price(S.P) is that price at which a particular item is sold.
Profit=S.P - C.P
Loss =C.P- S.P
Profit%=(profit*100)/C.P
Loss%=(loss*100)/C.P
the profit or loss percentage is always calculated based on C.P
The overhead expenses are added to C.P.
If A sold an article at a profit R1% to B.B sold it to C at a profit of R2% and C sold it to D at a profit of R3%.Then money spent by D for buying article C.P of D = C.P of A * (1+ R1/100)(1+ R2/100)(1+ R3/100).
If there are two successive profits (R1% and R2%) obtained on an article then total profit%=(R1+R2+ R1R2/100).
If a seller mark P% above cost price and gives a discount of Q%,the final Profit/loss %=P-Q-(PQ/100).
Discount percentage is calculated on the marked price(M.P)
Discount%= (Discount/M.P)*100
Cost Price= [(100+Gain%)/(100-Discount%)]*100