Formulas for Selling Price
The amount that a buyer pays for an item or a service is called the selling price of that item or service. The selling price is also known as sale price. We can determine the selling price of any product by using the formulas:
Selling Price = Cost Price + Profit
Selling Price = Cost Price – Loss
Where,
- Cost price is the price at which goods or services are bought by the owner or the seller.
- Profit is the amount gained by the seller when a product is sold at a price higher than its cost price.
- Loss is the amount of loss incurred by the seller when a product is sold at a price lower than its cost price.
Selling price can be found by the following formulas as well:
Selling Price = {\(\frac{(100~+~Percentage~Profit)}{100}\)} × Cost Price
Selling Price = {\(\frac{(100~-~Percentage~Profit)}{100}\)} × Cost Price
Rapid Recall
S.P = C.P + Profit
S.P = C.P – Loss
Where, S.P is the selling price and C.P is the cost price.
Solved Examples
Example 1: Find the selling price of a painting when the cost price is $220 and profit is $52.
Solution : Given, cost price, C.P = $220
Profit = $52
According to the formula, S.P = C.P + Profit
Substituting the values in the formula,
S.P = 220 + 52
= 272
Hence the selling price of the painting is $272.
Example 2: Jacob bought a refrigerator for $600 and sold it for a 20% profit. Find the price at which Jacob sold the refrigerator.
Solution: Here, the cost price, C.P = $600
Profit% = 20%
We can find the selling price, S.P by using the following formula:
Selling Price = {\(\frac{(100~+~Percentage~Profit)}{100}\)} × Cost Price
By substituting the values in the formula,
Selling Price = {\(\frac{(100~+~20)}{100}\)} × 600
= {\(\frac{(120)}{100}\)} × 600 [Add]
= 720 [Simplify]
Therefore, Jacob sold the refrigerator for $720.
Example 3: Jim owns a farm. He sold 2 dozen eggs to a store owner in the city for $20. Find the price at which the store owner sold the eggs if he incurred a loss of $5.
Solution: The store owner bought the eggs from Jim for $20 and sold them at a loss of $5, so,
The cost price of eggs = $20
Loss incurred by the store owner = $5
Selling price = Cost Price – Loss [Formula for selling price]
Selling Price = 20 – 5 [Substitute values]
= 15 [Subtract]
Hence, the store owner sold the eggs at $15.
Example 4: Alison’s shop sells a television set at a loss of 15%. Find the price at which the customer will purchase the set if its cost price is $500. Find the loss amount incurred by the shop owner.
Solution: Here, the C.P. = $500
Loss % = 15%
S.P. = {\(\frac{(100~-~Percentage~Profit)}{100}\)} × Cost Price [Formula for Selling Price]
= {\(\frac{(100~-~15)}{100}\)} × 500 [Substitute values]
= {\(\frac{85}{100}\)} × 500 [Subtract]
= 425 [Simplify]
Hence, the selling price of the television set is $425.
Now, S.P = C.P – Loss [Formula for Selling Price]
425 = 500 – Loss [Substitute Values]
Loss = 500 – 425 [Solve for Loss]
Loss = 75
Therefore, the customer will purchase the television set for $425 and the store owner will incur a loss of $75.
In simple terms, the selling price of an item is the price paid by the buyer to purchase the item.
If there is no loss or profit after an item is sold, the selling price and cost price are the same.
In order to make profit from selling an item, the selling price has to be greater than the cost price of the item.
If the selling price is greater than the cost price, the seller is said to have a profit.