 # (Online Course) CSAT Paper – II : Basic Numeracy: Profit & Loss ## Cost Price

The price at which an article is purchased is called the cost price or CP.

## Selling Price

The price at which an article is sold is called the selling price or SP.s

## Formulae

Gain or Profit = SP – CP ## Marked Price or List Price

Price that is indicated or marked on the article is called marked price or
MP.

## Discount

It is reduction given on the Marked Price or List Price of an article. If a trade gets x% profit and x% loss in selling two different articles, then
in over all transaction, there is always a loss which is given by Example 3: A book is bought for Rs. 80 and sold at the gain of 5%.
Find the selling price.

Solution. CP = Rs. 80, Gain = 5% Example 4: If cost price of 15 articles is equal to the selling price
of 12 articles, then find the gain per cent.

Solution. Let cost price of each article = Rs. 1

Then, Cost price of 15 articles = Rs. 15

Selling price of 12 articles = Rs. 15

But Cost price of 12 articles = Rs. 12

Profit = Rs. (15 – 12) = Rs. 3 Example 7: A radio is listed at Rs. 500 with a discount of 10%.What
additional discount must be offered to the customer to bring the net price to Rs.
423?

Solution. List price = Rs. 500, Discount = 10% 