The difference between the cost and the selling price

The difference between the cost and the selling price is known as either profit or loss.

Step 1: Identify the cost price. This is the price at which an item is purchased or manufactured.

Step 2: Identify the selling price. This is the price at which the item is sold to the consumer.

Step 3: Subtract the cost price from the selling price.

• If the selling price is higher than the cost price, the difference is a profit.
• If the cost price is higher than the selling price, the difference is a loss.

For example, if an item is purchased for $10 (cost price) and sold for$15 (selling price), the difference is $5, which is a profit. If the same item is sold for$8, the difference is -$2, which is a loss.