Calculation of Profit and Selling Price: Usually, we come across the words like Selling Price, Cost Price in our day-to-day activities. Suppose the Selling Price exceeds more than the Cost Price of a product you will obtain the Profit. Through this article, students of 6th Grade Math can attain a complete overview regarding the Profit, Selling Price, and Cost Price Definitions, with some Example Problems on Profit using the respective Formulas.
Profit, Selling Price – Definition
Selling Price is the price that a product is sold. The profit is a necessary result which is obtained where the selling price is higher compared to Cost Price. Subtracting the Cost Price from Selling Price is nothing but a profit. Various Profits exist such as operating profit, net profit, and Gross profit. Whatever it may be To know the profit we must know the values of both selling price and cost price.
Profit and Selling Price Formula
The formula to calculate the Profit with the given Expression in Terms of Cost Price and Selling Price as below:
Profit = Selling Price – Cost Price
Selling Price: Selling Price is the price that a product is sold. It is special for producing the returns that a business demands for obtaining the overall margin profit. This Often is indicated with S.P
Cost Price: The price paid to the product for buying is known as Cost Price.
How to Calculate the Profit and Selling Price?
In this section, we will see the complete process for calculating the Profit and Selling Price manually. Go with the Below steps and understand easily.
- First, notice the Cost Price and Selling Price values.
- Subtract the Cost Price From Selling Price.
- The resultant value gives us the Profit.
Calculating Profit and Selling Price Examples
A Shopkeeper bought 48 shirts, every shirt at a price of Rupees 420. He sold each shirt for Rupees 504. Then Calculate the profit.
1. Given Selling Price of shirts = 504
Cost Price of shirts = 420
2. Now implement the Profit Formula Profit = S.P- C.P
= 84 Rupees.
Therefore, the shopkeeper earns 84 rupees Profit.
Amar buys the Scooter with a cost of Rupees 30,000 and sells the scooter again for 45,000 Rupees. Calculate the profit he attains for the scooter.
1. Given Selling Price of Scooter = 45,000
Cost Price of Scooter = 30,000
2. Implement the formula to Calculate the Profit = Selling Price – Cost Price
= 45,000 – 32,000
= 13,000 Rupees
3. Amar gains the Profit of Rupees 13,000
Swapna sells goods for Rupees 8000; a profit of Rupees 2000 is made. Find out the Cost Price of the Scooter.
1. Given Selling Price = 8000
the profit he earns = 2000
2. According to the Formula we know Profit = Selling price – Cost Price
2000 = 8000 + Cost Price
Cost Price = 8000 – 2000
3. Six Thousand Rupees is the Cost price of the scooter.
FAQs on Calculating Profit and Selling Price
1. What is profit?
It is an amount attained when selling price > cost price.
2. What is Selling Price?
It is a price that is product is sold.
3. How do we Calculate the Profit when the Selling Price and Cost Price are known?
It is calculated by using the formula as Profit = Selling Price – Cost Price.
4. Does the Cost Price is required for the calculation of Profit?
Yes, it is very important to calculate the Profit Formula.