Introduction to Buying and Selling
Ram went to the market and bought a t-shirt for
$1000$
rupees.
After few days, Ramâ€™s friend Rohit came to his house and saw his t-shirt.
He asked Ram to sell his t-shirt to him.
And with the motive of earning some profit, Ram decided to sell the t-shirt for
$1500$
rupees.
In this situation, Ram bought the t-shirt for Rs
$1000$
,so the cost price(CP) of the t-shirt is Rs
$1000$
.
So we define C.P.(Cost price) as the price at which any material is bought by the person.
And Ram sold his t-shirt for Rs
$1500$
, so we can say that the selling price(SP) of the t-shirt is Rs
$1500$
.
So we define Selling price as the price at which a product or service is sold to the buyer.
For this case,
If the cost price is less than the selling price, the seller gains money and we term this as profit.
Letâ€™s, try to understand this with another example.
Suppose, Sam buys a pair of shoes for
$1000$
. So
$1000$
is the Cost Price of the shoes.
And then he sold that pair of shoes for
$800$
rupees, which is the selling price of the shoes.
Here, we observe that the cost price of the object or item is more than the selling price.
In this situation, Sam did not gain any money and we mention it as loss.
So, if cost price is greater than selling price, we find the total loss as
Similarly, we can find the total profit on an object as
Now, when the cost price is equal to the selling price then there is no profit or loss.
Revision
If cost price is greater than selling price, we find the total loss as
Similarly, we can find the total profit on an object when sp is greater than cp
And if cost price is equal to selling price then we have no profit and no loss.
The End