Calculation of Loss and Selling Price: Generally, we see the terms such as Selling price and cost price in real-life scenarios. For every business there exist a Loss and profit. In this article let us see the Definition of Loss and the procedure to calculate the Loss. If the Selling Price is Less than the Cost Price of an item, it indicates a Loss.
Loss and Selling Price – Definition
Selling price is a price where the item is sold. if we purchase a product at a particular price and sell at a discrete price, we might face or Loss or profit. Loss is required output such that the selling price is Lesser than the Cost Price. Subtracting the Selling Price from Cost Price gives us the resultant amount of Loss.
Loss and Selling Price Formula
The formula to calculate the Loss in phrases of the cost price and Selling Price as shown below
Loss = Cost Price – Selling Price
Selling Price: Selling price is a price where the item is sold. It is special to generate the returns the income in business to obtain the total margin profit. shortly specified with S.P
Cost Price: It is the amount of price which is employed to purchase the specific item. It is shortly specified as C.P. It is again divided into two types as below.
1. Fixed Cost: A cost that is stable, unable to change under any scenarios.
2. Variable Cost: It changes based on the number of units.
How to Calculate the Loss and Selling Price?
In this section let us see the complete step-by-step manner for Calculating the Loss and Selling Price which is easy when the Following steps are Followed.
- Enter the Given Selling Price and Cost Price values.
- Subtract the Selling Price from the Cost Price.
- The Overall Resultant Value is nothing but Loss.
Calculating Loss and Selling Price Examples
Suppose Kiran buys the Teddy bear for 1350 Rupees and he again sells the Teddy bear at a Loss of 25%. Then calculate the Selling Price of the Teddy Bear.
1. Given Cost Price of Teddy bear = Rupees 1350
The loss that Kiran Faced = 25%
2. Substitute in The Formula i.e. Selling Price = 75% of Cost Price
= 75% 0f 1350
= (75/100) .1350
3. Loss that Kiran for Teddy bear is Rupees 1021.5
When Amulya purchases Orange color balloons for Rupees 15 and she sells each balloon for Rupees 10. Then calculate the Loss obtained.
1. Given Selling Price of orange color Balloons = 10 Rupees and Cost Price = 15
2. Substitute in the Loss Formula which is Subtract the Selling Price from Cost Price i.e. Loss = Cost Price – Selling Price
= 15 – 10
= 5 Rupees
3. Loss that Amulya obtained = 5 Rupees.
FAQs on Calculating Loss and Selling Price
1. What is Loss?
It is nothing but subtracting the given selling price from the cost price. i.e. Cost price- Selling Price.
2. What is meant by Selling Price?
Selling price is a price where the item is sold.
3. How to Calculate the profit if the Selling Price and Cost Price are given?
It is calculated with the help of the formula as Loss = Cost Price – Selling Price.
4. What are the Types of Cost Price?
There are two types of Cost Price. 1. Fixed and 2. Variable Cost.
5. Do you need Both the Selling price and cost price to calculate the Loss that exists for an item.
Yes, both prices are required in the Loss formula.