Comparing Quantities-Notes

•   S.P. is selling price

•   C.P. is cost price

•   The overhead expenses are a part of CP.

•   Profit or loss is always calculated on CP

•   For profit, SP>CP and for loss CP>SP

•   Discount is always calculated on the marked price.

•   VAT is not a part of selling price. Although it is calculated on the SP but it is excluded from the SP while calculating profit or loss.

•   Formula for compound interest gives

                            Amount=P(1+R/100)ⁿ

                                  then CI=A-P

•   If the interest is compounded half yearly the time period becomes twice as much as the numbers of years. The rate of interest is reduced to half.

•   We compare two quantites by division.It is called ratio. Quantities written in same unit. Ratio has no unit

•   Another way to compare quantity is to express in percentages.

•   Profit= Profit/CPX100, Loss= Loss/CpX100