Question

Which of these denote the condition of profit?

• A. Cost Price
• B. Selling Price
• C. Marked Price
• D. Profit

Answer 1

The correct option is B Selling Price

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.

In option $B,S.P.=\text{Rs.}\frac{2400}{3}=800$ and $C.P.=\text{Rs.}\frac{3600}{12}=300$

Since, $S.P>C.P.$ in this case, it denotes the condition of profit