Question

For a situation of having neither profit nor loss, which of the following is correct?

• A. C.P > S.P
• B. S.P > C.P
• C. C.P = S.P
• D. C.P = 2 x S.P

Answer 1

The correct option is C

C.P = S.P

When selling price (S.P) of an article is more than the cost price (C.P), i.e. S.P > C.P, then a profit has incurred in the transaction.

Profit = S.P - C.P

When cost price (C.P) is more than the selling price (S.P.), i.e. C.P > S.P, then a loss has incurred in the transaction.

Loss = C.P - S.P

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