Wednesday, March 27

Calculating Percentage Formula Using a Formula



There can always be a loss or profit in business. This concept is well explained in mathematics. A profit is obtained only when a product is sold at a greater price than its original cost. A loss is obtained in a business when the product is sold at a lower price than the cost of the product. This is the basic difference between the terms profit and loss. So, the selling price and the cost price of a product are very important in deciding the profit or loss obtained by selling a product. Various techniques are used to earn profit or avoid loss. Both these processes are same in nature. One can earn profit only by avoiding loss.

Now when a loss is obtained in a particular transaction, percent loss can be calculated from it. This helps in better understanding of the whole situation. The percentage loss can be calculated only after the loss in a transaction is found out. So, first the loss is found out. This is found by subtracting the price at which it is sold to the price it is produced. The price at which it is sold is called the selling price and the price at which it is produced is called the cost price. On using this formula in the case of profit a positive value is obtained and in the case of a loss a negative value is obtained. The negative value indicates that the value obtained is loss.

The percent loss formula can be derived once the pct is found out. To calculate percent loss formula, it is necessary to calculate the loss first in a transaction. Once the loss is calculated it is easy to calculate percentage loss formula with its help. The pct can be calculated only when the price at which it is produced is known. The cost at which a product is produced can be taken as the cost price. First the loss is calculated and then it is divided by the cost price.

For the calculation of the pct the answer obtained is always multiplied by 100. Only then the answer obtained is converted into pct. Similar is the case with the calculation of the gain pct. There can be either a gain or a loss in a transaction. Maximum emphasis is given to obtain profit. Profit is nothing but the gain. Both can be used interchangeably.

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