Question

Applications of profit and loss in daily life.

Answer 1

In our daily life, we buy goods from the shopkeepers in the market which they buy either directly from the manufacturers or through the wholesalers. In order to earn money the shopkeeper sell goods at higher price than which they bought.

Cost price : The money paid by the shopkeeper to buy the goods from wholesaler is called Cost Price ( C.P)

Selling Price : The price at which the shopkeeper sells the goods is called Selling Price (S.P) or in short the money paid by us to shopkeeper is called Selling Price(S.P)