CP is the abbreviation used for cost price. CP is the amount we pay to purchase any commodity. So, CP is nothing but the buying price of a commodity. If CP is less than the selling price, then you earn a profit and if CP is greater than the selling price, then we incur a loss. CP formula is used to calculate the CP. In this section, we will be discussing two CP formulas, and understand the variables involved. Let us learn the CP formula with a few solved examples.
What is the CP Formula?
CP is the amount we pay to buy a commodity. CP is computed by the following two CP formulas.
Formula 1: If we earn a profit while selling a product, we use the following CP formula.