Profit and loss profit is the difference between the selling price and the cost price of an orticle. f the selling price is less than the cost price, the difference is called a loss. A shopkeeper or retailer purchases his goods for a certain price. This amount s called the cost price or CP. The price that the shopkeeper sells the goods to a customer is called the selling price or SP. Profit (or loss) can be calculated as SP - CP.
Upstudy AI Solution
Answer
Solution
Answered by UpStudy AI and reviewed by a Professional Tutor
Explain 
Simplify this solution Mind Expander
Did you know that the concept of profit and loss has been around since ancient civilizations? Merchants from Mesopotamia to the Roman Empire were keeping track of their goods' cost and selling prices to ensure they remained profitable. They may not have had spreadsheets, but they certainly understood the basic principles of business that still apply today. In today’s world, understanding profit and loss is crucial for any budding entrepreneur. For instance, a small coffee shop needs to know the cost of beans, rent, and wages versus what they bring in through sales. By analyzing these numbers, they can make informed decisions—like whether to raise prices, cut costs, or even expand the menu—to boost profits and ensure sustainability over the long haul!
