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- Cost Price ( CP ) : Price at which the seller brought the product.
- Selling Price ( SP ) : Price at which the seller sells the product to you or the customer.
- Marked Price ( MP ) : It is the price displayed on the product. ( Also, called MRP )
- Profit ( P ) : When SP > CP, seller makes a profit.

**P = SP – CP ; P% = ( P / CP ) x 100**

- Loss ( L ) : When SP < CP, seller suffers a loss.

**L = CP – SP ; L% = ( P / CP ) x 100** Remember that both profit and loss are always calculated on the cost price of the product.

- Discounts ( D ) : The concession given by the seller on the marked price ( MP ) of the product is called discount.

SP = MP – Discount Markup = MP – CP ; Markup % = [ ( MP – CP ) / CP ] x 100 Remember that discount percentages are always calculated on the Marked Price ( MP ) of the product. The main formula for this is as follows : Initial Value ( CP ) x Multiplication Factor ( MF ) = Final Value ( SP )

- For two successive profits or losses on an item, the formula for the resultant profit / loss % is :-
**x + y + ( xy / 100)**

**Note: Both ‘x’ and ‘y’, here are profit / loss percentages, as given in the question. For profit use ‘+’ sign and for loss use ‘–’ sign. If result is in + then, there is an overall profit, if it is in ‘–’ then there is an overall loss.** For more than two successive profits or losses on an item, the above formula for resultant profit / loss % is applies iterative-ly.

- If two items, which have the
**same CP**, are sold such that one is at a profit of x% whereas the other is at a loss of x%. Then in the entire transaction, the seller**neither suffers a loss nor receives profit**. - However, if two items with the
**same SP**, are sold such that one is at a profit of x% whereas the other is at a loss of x%. Then in the entire transaction, the**seller suffers a loss**, which is given by the following formula :-

**Overall Loss% = x^2 / 100 [ square of the common profit or loss % divided by 100 ]**