Calculate Cost Price using Sell Price and Loss Percent

Loss and Loss Percent is raised when the cost price is higher than the selling price. We can calculate the Cost Price when Sell Price and Loss Percent are given. Improve your preparation by referring to the complete article. Check out how to find the Cost Price and different solved examples on finding the Cost Price using Sell Price and Loss Percent from the below article. Also, find out the different formulas to use to find the cost price.

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How to Calculate Cost Price using Sell Price and Loss Percent?

To find out the Cost Price using Sell Price and Loss Percent, use the below formula.
Cost price = selling price + loss
Cost price = selling price + loss% × cost price/100
The Cost price – loss% × cost price/100 = selling price
Cost price(1 – loss%)/100 = selling price
Cost price(100 – loss%)/100 = selling price
Also, Cost price = selling price × 100/100 – loss% (on cross multiplication)

Examples for finding Cost Price using Sell Price and Loss Percent

1. By selling a bicycle for $145, a shopkeeper loses 10%. How much percent would he gain or lose by selling it for $175?

Solution:
Given that by selling a bicycle for $145, a shopkeeper loses 10%.
The selling price = $145
Loss Percentage = 10%
We know that cost price = selling price × 100/100 – loss%
Substitute the selling price and the loss% in the above formula.
Cost price = $145 × 100/100-10
Cost price = $145 × 100/90
The Cost price = $14500/90
Cost price = $161.11
Therefore, cost price of the bicycle = $161.11
Now, if the selling price = $175, then gain = $175 – $161.11  = $13.89
Therefore, gain% = gain/cost price × 100
= 13.89/161.11 × 100
= 1500/150
= 8.62%

Therefore, he would have gained 8.62%.

2. If the selling price of a pen is $9 and the loss percent is 2%, then what is the cost price?

Solution:
Given that the selling price of a pen is $9 and the loss percent is 2%.
The selling price of a pen = $9
The loss percent is 2%.
Cost price = selling price × 100/100 – loss%
Substitute the selling price and the loss% in the above formula.
Cost price = $9 × 100/100 – 2
Cost price = $9 × 100/98
The Cost price = $900/98 = $9.18

Therefore, the cost price of the pen is $9.18.

3. Find out the cost price of the vehicle if the selling price is $3350 and the Loss is $154.

Solution:
Given that the selling price is $3350 and the Loss is $154.
The selling price of a pen = $3350
The loss = $154
Loss = Cost Price – Selling Price
Cost Price = Loss + Selling Price
Substitute the selling price and the loss in the above formula.
Cost Price = $154 + $3350
Cost Price = $3504

Therefore, the cost price of the vehicle is $3504.

FAQs on finding C.P using S.P and Loss%

1. What Does Cost Price Mean?

The cost price is the original price of an item. The cost is the total amount need to produce a product or carry out a service.

2. What is the Formula for the Cost Price?

The formula for Cost Price when the SP and L% are given
CP = {100/(100 – L%)} x SP where SP is the Selling Price and L is the Loss.

3. What are the types of Cost Prices?

Cost Price (CP) is the amount paid to buy the product is known as Cost Price. It is denoted by CP. Also, the cost price classified into two different categories. They are
Fixed Cost: The fixed cost is constant and it doesn’t vary under any circumstances.
Variable Cost: It could change depending on the number of units.

4. How to Calculate Cost Price?

Follow the below steps and find out the process to calculate cost price when the selling price and loss% are given.
1. Note down the selling price and loss%.
2. Write the formula of cost price i.e, CP = {100/(100 – L%)} x SP
3. Substitute the SP and L% in the above formula.
4. Calculate and find the Cost Price of the product.

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