Statement 1: Profit is defined as the positive difference between selling price and cost price whenever SP > CP.
Statement 2: Loss is found when CP > SP.
Choose the correct option with respect to the above statements.
Both statements 1 and 2 are true
Profit is made when SP > CP.
It is calculated as, Profit = SP - CP
Loss is made when CP > SP.
It is calculated as, Loss = CP - SP
Hence, both the statements are true.