Question

why is always profit or loss percent calculated on cost price not on the selling price​

Answer 1

Answer:

Formula to calculate cost price if selling price and profit percentage are given: CP = ( SP * 100 ) / ( 100 + percentage profit).

Formula to calculate cost price if selling price and loss percentage are given: CP = ( SP * 100 ) / ( 100 – percentage loss ).

Answer 2

Answer:

For example, for a shopkeeper, if the value of selling price is more than the cost price of a commodity, then it is a profit and if the cost price is more than the selling price, it becomes a loss.