Theory:

Formula:
 
\(\text{Discount}\) \(=\) \(\text{M.P.}\) \(-\) \(\text{S.P.}\)
 
\(\text{S.P.}\) \(=\) \(\text{M.P.}\) \(-\) \(\text{Discount}\)
  
1. C.P. \(=\) \(Rs.1300\)
  
M.P. \(= Rs.1400\)
  
Discount (in \(Rs.\)) \(= Rs.40\)
  
Find S.P. and profit or loss.
  
\(\text{S.P.}\) \(=\) \(\text{M.P.}\) \(-\) \(\text{Discount}\)
 
\(= 1400 - 40\)
 
\(= Rs.1360\)
 
In this case, S.P. \(>\) C.P.
 
Therefore, there is a profit.
 
\(\text{Profit}\) \(=\) \(\text{S.P.}\) \(-\) \(\text{C.P.}\)
 
\(= 1360 - 1300\)
 
\(= Rs.60\)
 
  
2. C.P.\(=\) \(Rs.1200\)
  
M.P.\(= Rs.1250\)
  
Discount (in \(Rs.\)) \(= Rs.100\)
 
Find S.P. and profit or loss.
 
\(\text{S.P.}\) \(=\) \(\text{M.P.}\) \(-\) \(\text{Discount}\)
 
\(= 1250 - 100\)
 
\(= Rs.1150\)
 
In this case, C.P. \(>\) S.P.
 
Therefore, there is a loss.
 
\(\text{Loss}\) \(=\) \(\text{C.P.}\) \(-\) \(\text{S.P.}\)
 
\(= 1200 - 1150\)
 
\(= Rs.50\)