Question

If profit is 5%and selling price is S.P. what will be C.P in term of G and S.P​

Answer 1

To find the Cost Price (C.P.) with a known profit percentage of 5% and the Selling Price (S.P.), you can use the formula C.P. = S.P. / 1.05. The Cost Price is therefore the Selling Price divided by 1.05.

Step-by-step explanation:

The question is asking to find the Cost Price (C.P.) given that the profit is 5% and we know the Selling Price (S.P.). To calculate the C.P. when the profit percentage is known, we can use the formula:

C.P. = S.P. / (1 + (Profit % / 100))

Here, Profit % is 5, so we have:

C.P. = S.P. / (1 + (5 / 100))

Which simplifies to:

C.P. = S.P. / 1.05

This means that the Cost Price is the Selling Price divided by 1.05.

Using the given information about profit and loss in the examples, if total revenues are less than total costs, a firm experiences losses. When determining the profit-maximizing output level, the profits made are calculated as revenue minus costs. The average profit can be represented by the formula:

average profit = price - average cost

This implies that the firm will realize a profit if the price is above the average cost.