What Is Profit?
Profit is the income remaining after deducting all expenses. It is one of the most important terms used widely in business. Profit formula is generally used when describing business activities or to calculate the gain in any financial transactions. The other name of profit is net income as it is the amount left over after deducting all the expenses for that particular period.
What Is Known As Profit Formula?
The profit formula is used to know how much profit a business has made after selling a particular product. The profit formula is widely used in business and financial transactions. Profit generally arises when the selling price of any product is more than its cost price. On the other hand, loss arises when the cost price of a product is more than its selling price.
It should be noted that in a day-to-day business transaction, both profit and loss are represented as a percentage. It shows how much profit or loss a trader has attained from a particular deal. Learn more real-life applications of this formula on cuemath website.
Important Profit Formulas:
Profit = Selling Price (SP) – Cost Price(CP)
Profit Percentage = ProfitCost Price 100
What Is Cost Price and Selling Price?
Cost Price: Cost Price also known as CP is the price at which the product was originally brought.
Selling Price: Selling Price, also known as SP, is the price at which the product was sold.
Let us understand the profit formula using an example:
Profit Formula Example
A shopkeeper bought lunchboxes in bulk for Rs. 100 each. He sold them for Rs. 120 each. Find the profit and profit percentage?
Solution:
Selling Price of Lunch Box = Rs. 120
Cost Price of Lunch Box = Rs. 100
Using Profit Formula
Profit = Selling Price (SP) – Cost Price(CP)
Profit = 120 – 100
Profit = Rs. 20
Therefore, the profit on each lunchbox is Rs. 20.
Profit % = ProfitCost Price 100
Profit % = 20100 100
= 20.
The profit percentage of the shopkeeper will be Rs. 20.
Maths Online Classes
Mathematics is a subject that requires a clear understanding of concepts. It is a difficult subject for those who do not get proper guidance to understand the conceptual things. But the same subject can be made to learn by teachers in an interesting way through some innovative and effective techniques. In the present scenario, when the world is going online, the education system also has restructured itself to get adapted to digital methods of learning. Various coaching and training institutes are offering online classes to help students continue their studies with the flexibility of location and time. Even without being physically present, students and teachers interact through online platforms using digital tools and techniques and carry-on studies. Math online classes have proven to be very effective for students in terms of providing quality education and developing confidence among them to handle mathematical assignments in a simple and convenient manner.
The online learning platforms ensure that students are able to access the various learning apps in a user-friendly way. The mathematics classes on the online platforms are conducted by top teaching faculties from renowned educational institutions. The learning management apps focus on building a platform that makes both students and teachers comfortable using the digital tools and applications for learning and feedback. The audio and video facilities help students to get a feel of live classroom sessions. The students get guidance from teachers on a variety of topics relevant to their requirements. The students are allowed to learn multiple methods of problem-solving techniques that make them confident to handle difficult assignments in school, college, or competitive examinations.