**Profit and loss problems involve various terms like Cost price, Selling price, Marked price and Discount etc. Basically, it is a difference between selling price and cost price**.

**is the price paid to purchase an article or a product or we can say it is a cost incurred in manufacturing an article.**

__Cost price__**is the price at which a product is sold.**

__Selling price__## 6 Commonly used Profit and loss Formulas :

**1)** Calculation of Profit:

**= Selling price(S.P) - Cost price(C.P)**

__Profit or gain__in other ,

⇒ Selling Price = Cost Price + Profit

**2) Calculation of Loss**

**= Cost price - Selling price**

__Loss__**3) Calculation of **Gain percentage(%)

**4)** Calculation of Loss percentage(%)

**5) **Finding relationship between selling price and cost price:

__For__**If an article is sold at a gain of 27%, then by using the first formula, you can find that S.P. is 127% of C.P.**

__Example:__Similarly, If an article is sold at loss of 18%, then by using the second formula, you can find that S.P. is 82% of C.P.

**6)** Finding Combined Profit/Loss on sale of Two products

If a person sells two commodities at same prices. On one he gains x% and loses x% on another, then as a whole he will be in loss and the loss percentage will be equal to:Note: Here is an example to find gain in case of dishonesty.

Problem 1: A dishonest dealer professes to sell his goods at cost price but he uses a weigh 960 grammes for 1 kg. How to calculate the gain percentage?

**Solution:**

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