How to Calculate Cost Price: Simple Steps to Find CP

Learn to calculate cost price accurately using our simple formula and examples. Master your pricing strategies today!

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Cost Price Formula: Calculate the Cost Price (CP) using the formula: CP = Selling Price (SP) - Profit or CP = SP + Loss. Example: If an item sells for $150 and the retailer earns $30 profit, the CP is $120 ($150 - $30). Alternatively, if the sale resulted in a $20 loss, the CP would be $170 ($150 + $20). Always factor in additional expenses such as shipping or taxes for accuracy.

FAQs & Answers

  1. What is the formula to calculate cost price? The cost price (CP) can be calculated using the formula: CP = Selling Price (SP) - Profit, or CP = SP + Loss.
  2. How do I determine the cost price if I made a profit? If you made a profit, subtract the profit from the selling price. For example, if an item sells for $150 and the profit is $30, the cost price is $120.
  3. How do I calculate cost price when there is a loss? If you incurred a loss, add the loss to the selling price. For instance, if an item sells for $150 and there is a $20 loss, the cost price will be $170.
  4. What additional factors should I consider when calculating cost price? When calculating cost price, always consider additional expenses such as shipping, taxes, and any other associated costs for accurate pricing.

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