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EXAMPLE:

A seller sells a washing machine at a cost price of Rs 15000 with a profit of 20%.
Calculate the price at which the customer will purchase it. And also, find profit
earned by the shopkeeper.
Solution:

C.P = Rs 15000

Profit % = 20%
Profit = C.P x profit %

Profit = 15000 X 20/100

Profit = Rs 3,000
Selling price = Profit + C.P

= Rs 3000 + Rs 15,000 = Rs 18,000

So, the amount payable by the customer to the seller = Rs 18,000.
C0ST PRICE FORMULA

Formula to calculate cost price if selling price and profit percentage are given:

CP = ( SP * 100 ) / ( 100 + percentage profit).

Formula to calculate cost price if selling price and loss percentage are given:

CP = ( SP * 100 ) / ( 100 – percentage loss ).

Profit or loss percentage

The profit and loss can be converted into a percentage. It is always calculated on the
cost price.

Cost Price
Cost price is the price at which you buy some product. It is written as CP.

Selling Price

Selling price is the price at which you sell something. It is written as SP.
These are the factors which tell us that the sale of some product is profitable or not.

CP < SP Profit Profit = SP – CP

CP = SP No profit no loss -

CP > SP Loss Loss = CP - SP