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SAI INTERNATIONAL SCHOOL
CLASS – VII

SUB: MATHS
CHAPTER-8: COMPARING QUANTITIES
LESSON NOTES

SUBTOPIC: PROFIT AND LOSS, ESTIMATION

Cost Price and Selling Price:

You can decide whether the sale was profitable or not depending on the CP and SP.

If CP < SP then you made a profit = SP – CP. If CP = SP then you are in a no profit no
loss situation. If CP > SP then you have a loss = CP – SP.

Let us try to interpret the statements related to prices of items.

1. A toy bought for 72 is sold at 80
2. A T-shirt bought for 120 is sold at 100.
3. A cycle bought for 800 is sold for 940.

Let us consider the first statement.

The buying price (or CP) is 72 and the selling price (or SP) is 80 This means SP is
more than CP. Hence profit made = SP – CP = 80 – 72 = 8

Now try interpreting the remaining statements in a similar way:

Formula for Selling Price
It can be calculated as follows:

SP = {(100 + Gain %)/100} x CP

SP = {(100 – Loss %)/100} x CP

SP = CP + Profit

SP = CP – loss

 C.P – Cost Price
 S.P – Selling Price
 If S.P> C.P = Gain

 If S.P < C.P =Loss