What is Selling Price?

S1-SA2-0850

Grade Level:

Class 5

Finance, Economics, Maths, Business

Definition

What is it?

Selling Price is the amount of money a shopkeeper or seller receives when they sell an item to a customer. It is the price at which something is sold.

Simple Example

Quick Example

Imagine your mother buys a new 'kurta' for ₹500 from a shop. For the shopkeeper, ₹500 is the Selling Price of that kurta. It's the money they got for selling it.

Worked Example

Step-by-Step

PROBLEM: A bookseller buys a storybook for ₹120 and wants to make a profit of ₹30. What will be the Selling Price of the storybook?

1. Identify the Cost Price: The bookseller bought the book for ₹120. So, Cost Price (CP) = ₹120.
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2. Identify the Profit: The bookseller wants to make a profit of ₹30. So, Profit = ₹30.
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3. Use the formula for Selling Price: Selling Price (SP) = Cost Price (CP) + Profit.
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4. Substitute the values: SP = ₹120 + ₹30.
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5. Calculate the Selling Price: SP = ₹150.

ANSWER: The Selling Price of the storybook will be ₹150.

Why It Matters

Understanding Selling Price is super important in Maths, Business, and Economics. Shopkeepers, business owners, and even people who sell things online use this concept daily to decide how much to charge and make a profit. It helps them run their businesses successfully.

Common Mistakes

MISTAKE: Confusing Selling Price with Cost Price. | CORRECTION: Selling Price is what you sell for; Cost Price is what you buy for. They are different amounts.

MISTAKE: Always thinking Selling Price must be higher than Cost Price. | CORRECTION: If there is a loss, the Selling Price can be lower than the Cost Price. For example, during a sale.

MISTAKE: Forgetting to add profit (or subtract loss) when calculating Selling Price. | CORRECTION: Selling Price is Cost Price plus profit, or Cost Price minus loss. Always remember to include profit or loss.

Practice Questions

Try It Yourself

QUESTION: A toy shop buys a remote-control car for ₹800 and sells it for ₹1050. What is the Selling Price of the car? | ANSWER: ₹1050

QUESTION: A fruit seller buys mangoes for ₹50 per kg. He sells them for a profit of ₹15 per kg. What is the Selling Price per kg of mangoes? | ANSWER: ₹65

QUESTION: Ritu makes handmade greeting cards. Each card costs her ₹18 to make. She wants to earn a profit of ₹12 on each card. What should be the Selling Price of one greeting card? | ANSWER: ₹30

MCQ

Quick Quiz

What is the Selling Price if a shopkeeper buys an item for ₹200 and sells it for ₹250?

₹200

₹50

₹250

₹450

The Correct Answer Is:

The Selling Price is the amount for which the item is sold. In this case, the item is sold for ₹250. ₹200 is the Cost Price, and ₹50 is the Profit.

Real World Connection

In the Real World

When you visit a local 'kirana' store or buy snacks from a street vendor, the price you pay for any item (like a packet of 'biscuits' or a bottle of 'cold drink') is the Selling Price for the shopkeeper. Even online stores like Flipkart or Amazon display the Selling Price of their products.

Key Vocabulary

Key Terms

SELLING PRICE (SP): The amount for which an item is sold | COST PRICE (CP): The amount for which an item is bought | PROFIT: The extra money earned when SP > CP | LOSS: The money lost when SP < CP | CUSTOMER: The person who buys an item

What's Next

What to Learn Next

Great job understanding Selling Price! Next, you should learn about 'Cost Price' and 'Profit and Loss'. These concepts build directly on what you've learned and will help you understand how businesses calculate their earnings and expenses!