Question

In a situation where there is neither profit nor loss, which of the following is correct?

• A. S.P. > C.P.
• B. C.P. = S.P.
• C. C.P. > S.P.
  
• D. C.P. = 2$\times$S.P.

Answer 1

The correct option is B 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 is earned 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 been incurred in the transaction.

Loss = C.P. - S.P.

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