Question

For a situation of no profit no loss, which of the following is correct?

• A. CP > SP
• B. SP > CP
• C. CP = SP
• D. None of these

Answer 1

Answer: (B), (C)

Let Cost prince (CP) of an article is $Rs.10$.

Case 1:

If the Selling price of same article is $Rs.12$

Then, it is $Rs.2$ more from Cost prince (CP).

i.e., if $CP<SP$ then there is a profit in whole transaction.

Case 2:

If the Selling price of same article is $Rs.8$

Then, it is $Rs.2$ less from Cost prince (CP).

i.e., if $CP>SP$ then there is a loss in whole transaction.

Case 3:

If the Selling price of same article is also $Rs.10$.

Then it is same as Cost prince (CP).

Here, no profit and no loss.

i.e., if $CP=SP$ then no profit and no loss.

Hence, Option C is correct.