COST PRICE (CP):
The price at which an article is bought.
SELLING PRICE (SP):
The price at which an article is sold.
If an article is sold at higher price than the proce at which it is bought then the seller is said to have profit.
If the cost at which an article was bought is higher than the price which it is sold then the seller is facing a loss.
(SP means Selling price, CP means Cost price,P means Profit, L means Loss)
If the article is sold at profit of 10% then SP=110% of CP
If the article is sold at 10% loss then SP=90% of CP
Profit = Selling price - Cost price.
Loss = Cost price - Selling price.
Ratio of profit to cost price = P : C.P.
Percentage of profit = (P/c.p)*100.
Percentage of loss = (L/c.p)*100.