This is a very fundamental chapter where students can learn how to calculate profit and loss, which is important for their future in day-to-day life. So, in RD Sharma Solutions for Class 7 Maths, Chapter 12, profit and loss, the students learn the basic idea and profit and loss calculation aspect. The profit and loss formula is used to determine the cost of a commodity and is also used in understanding how profitable a business is.
There are two prices for every product. They are the cost price and the selling price. Cost price is the total sum of money it costs for a manufacturer to produce a product, whereas selling price is the price that a customer pays to purchase a product. This price is always higher than that of the cost price because it also includes profit. Another important concept is calculating the profit and loss percentage. A seller gains a profit if the selling price of an item is more than that of the cost price of the same item. Net profit can be understood by calculating the difference in selling price and the cost price
Net Profit = SP – CP
In contrast, the seller suffers a loss when the cost price of an item is greater than the selling price of the same item. Net loss is the difference between the amount of cost price and the selling price
Net Loss = CP – SP
Furthermore, in this chapter, students study topics like finding profit or loss when Cost Price and Selling Price are given, calculating the CP or SP when profit and loss are given, finding profit or loss percent, finding selling price when cost and profit or loss percent are given and vice versa.