Question

For a situation of having a loss, which of the following is correct?

• A. CP > SP
• B. SP > CP
• C. CP=SP
• D. MP=CP

Answer 1

The correct option is A CP > SP

Whenever, Selling Price$(S.P.)$ of an article is more than the Cost Price$(C.P.)$, i.e. $S.P.>C.P.$, then the difference between them$(S.P.-C.P.)$ is the profit.

And, when Cost Price$(C.P.)$ is more than the Selling Price$(S.P.)$, i.e. $C.P.>S.P.$, then the difference $(C.P.-S.P.)$ is the loss.

But, when $C.P.=S.P.$, then there is neither loss nor profit.