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Maths Formulas

Selling Price Formula

In our daily life, whenever we go to the market to buy something, we need to pay an amount of money to the shopkeeper or vendor. This amount which we pay is the selling price of that commodity. During the sale season, commodities are sold at discounts. Say, flat 10% or 20% or 50% off. Thus, sometimes we need to find out the selling price of the commodity. Thus, it is an integral part of our day-to-day routine. Let us now study selling price formula in detail.

Selling Price Formula

What is the selling price?

Selling price is the price that a customer pays to purchase a product or a commodity.  It is a price above the cost price and includes a percentage of profit also. Cost price is the price at which the seller purchases the product or the commodity. He then adds a percentage of profit or gains to it. Marked price or list price is the price that a seller fixes after adding the required percentage of profit.

Marked price is the price that a seller quotes to the buyer while selling price is the price that he actually receives from the buyer after a bargain. Usually, the marked price is higher than the selling price. However, selling price and the marked or list prices can be the same. A fixed price shop is an example of it.

Selling Price Formula

Selling Price is a very sensitive issue as the sales of a product depends on it to a large extent. Any product which has a high selling price may not be able to attract many buyers as consumers may not feel that it is value for money. On the other hand, a very low selling price can affect the profitability of the business. Also, the buyers may think that it is of inferior quality.

Important Selling Price Formula

  1. Selling price = Cost price + Profit
  2. Selling price = Marked/List price – Discount
  3. Selling price = \(\frac{100 + Profit}{100}\) × Cost price
  4. Selling price = \(\frac{100- Loss}{100}\) × Cost price

Some Related Important Formulas

  1. Cost price = Selling price – profit
  2. Profit = Selling price – Cost price
  3. Loss = Cost price – Selling price
  4. % Profit = \(\frac{Profit}{Cost price}\) × 100
  5. % Loss =\( \frac{Loss}{Cost price}\) × 100

Solved Examples

Q.1. Anay marks all his goods 40% above the cost price and offers a discount of 20% on the list price. He is of the opinion that he will earn a profit of 20%. What do you think is the percentage of profit he earns?

Solution: Let the cost price be ₹100.

Therefore, the list price will be = ₹100 + 40% of cost price.

= 100 + 40

= ₹140

Now, the selling price = list price – discount

= 140 – 20% of 140 = 140 – 28

= ₹112

Hence, the profit = Selling price – Cost price

= 112 – 100 = ₹12

Thus, the percentage of profit is 12% and not 20%.

Q.2. Beena invests in shares. She earns 25% in the shares of one company while loses 15% on the others. If the ratio of her investment is 2:3, has she gained or lost in both the shares taken together?

Solution: Let us assume that she invests ₹200 and ₹300 respectively in both the shares.

Thus, Profit in one share = 200 × \(\frac{25}{100}\) = ₹50

Loss on the other share = 300 × \(\frac{15}{100}\)  = ₹45

Therefore, the net profit = profit – loss = 50 – 45

= 5

In terms of percentage:

\(\frac{Net profit}{200 + 300}\) × 100

= \(\frac{5}{200 + 300}\) × 100

= 1%

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