Profit and
Loss Aptitude basics, practice questions, answers and explanations
Profit=SP-CP
Loss=CP-SP
Profit %= (Profit/CP) *100
Loss %= (Loss/ CP) *100
Discount= MP-SP
Discount %= (discount/ MP) * 100
where SP= Selling Price, CP= Cost Price, MP= Marked Price
Exercise questions
1. A trader makes a profit equal to the selling price of 75 articles when he
sold 100 of the articles. What % profit did he make in the transaction?
A)
33.33%
B) 75%
C) 300%
D)150%
Solution:-profit=SP of 75 articals CP=SP of 25 articals and SP=SP of 100
articals
Profit%=(profit/CP) *100=((10-25)/25)*100=300%
2. A merchant buys two articles for Rs.600. He sells one of them at a profit
of 20% and the other at a loss of 10% and makes no profit or loss in the end.
What is the selling price of the article that he sold at a loss?
A) Rs. 400
B)
Rs.440
C) Rs.
536.80
D) Rs. 160
Solution:- Assume that the cost prices be x and y
Total cost price=600=x+y……(1)
Total selling price=120% of x+90% of y
But he get no profit/loss
600=120% of x+90% of y
4x+3y=2000……(2)
Now solve equations (1) and (2) for y
Y=400 Rs.
3. A trader professes to sell his goods at a loss of 10% but weights 900
grams in place of a kg weight. Find his real loss or gain per cent.
A) 2% loss
B) 0.00% gain
C) 2% gain
D)None of these
Solution:- Use the following formula
(100+g)*Faulty measure=(100+x)*True measure
Where,
g-overall gain/loss
x-profit or loss (as per CP & SP)
here we have x=-10 (loss) ,g=? ,true measure=1000gm, faulty measure=900gm
now put the given values in to the formula
(100+g)*900=(100-10)*1000
100+g=900/9
G=0.00%
4. If apples are bought at the rate of 30 for Rs.100. How many apples
must be sold for Rs.100 so as to gain 20%?
A) 28
B)25
C)
20
D) 22
Solution:- To gain 20% profit he will have to sell the 30 apples for 120 Rs.
Assume that he sells x number of apples for Rs. 100
i.e:- 120% of x=30
120/100*x=30 è x=30*100/120=25
That means to have 20% profit he will sell 25 apples for 100 Rs.
5.Rajiv sold an article for Rs.56 which cost him Rs.x. If he had gained x% on
his outlay, what was his cost?
A) Rs. 40
B) Rs. 45
C) Rs. 36
D)Rs. 28
Solution:- Given, SP=56 ,CP=X ,Profit%=X%
we know that
Profit%=(profit/CP)*100
X=[(56-X)/X]*100
X^2+100X-5600=0……..solve for X
X=CP=40
6. One year payment to the servant is Rs. 200 plus one shirt. The
servant leaves after 9 months and receives Rs. 120 and a shirt. Then find the
price of the shirt.
A) Rs. 80
B) Rs. 100
C) Rs. 120
D) Cannot be determined
Solution:- Let x be the price of the shirt then
payment for 12 months=200+x
payment for 1 month=(200+x)/12………(1)
but, payment for 9 months=120+x
payment for 1 month=(120+x)/9…………..(2)
from (1) & (2)
(200+x)/12=(120+x)/9
Solve for x and we get
X=120
7. Two merchants sell, each an article for Rs.1000. If Merchant A computes
his profit on cost pricwhile Merchant B computes his profit on selling
price, they end up making profits of 25% respectively. By how much is the
profit made by Merchant B greater than that of Merchant A?
A) Rs.66.67
B) Rs. 50
C) Rs.125
D) Rs.200
Solution:- SP1=SP2=1000
Merchant A =CP+Profit=1000
if profit%=25%
èprofit=200…….merchant
A
Profit=25% of 1000=250…….merchant B
Difference=250-200=50
8. A merchant marks his goods in such a way that the profit on sale of 50
articles is equal to the selling price of 25 articles. What is his profit
margin?
A) 25%
B)50%
C) 100%
D)66.67%
Solution:- here CP=SP of 25 articles and SP=SP of 50 articles èprofit=SP
of 25 articles
Hence profit%=100%
9. A merchant marks his goods up by 75% above his cost price. What is the
maximum % Amount that he can offer so that he ends up selling at no profit or
loss?
A)75%
B) 46.67%
C) 300%
D)42.85%
Solution:-Assume that the CP=100 & SP=175 also assume that he reduces x%
amount to get no profit no loss.
X% of 175=100
X=400/7
That means he will offer=100-400/7=300/7=42.85%
10. A merchant marks his goods up by 75%
above his cost price. What is the maximum % Amount that he can offer so that he
ends up selling at no profit or loss?
A)75%
B) 46.67%
C) 300%
D)42.85%
Solution:-Assume that the CP=100 & SP=175
also assume that he reduces x% amount to get no profit no loss.
X% of 175=100
X=400/7
That means he will
offer=100-400/7=300/7=42.85%
11. A dealer buys a product at Rs.1920. he sells
at a discount of 20% still he gets teh profit of 20%. what is the selling
price? ( 1 Marks )
A) 534
B)
2300
C)
2304
D) 2403
Solution:- cost price
is 1920
now discount part is to confuse you because the actual selling price will never
depend on discount
so 20% of 1920 is 384
and adding the profit to calculate selling price 1920+384=2304
12. Mani sells vegetables and he marks up the prices at 5% above his cost
price. Also the weighing stones used by him weigh only 90% of the correct
weight. Find his effective percentage of mark-up. (2 Marks )
A) 15%
B)
16^2/3%
C)
14^1/2%
D) 20%
Solution:- let
the cost price be 100 of 1 kg....now he will sell 1 kg in 105 but due to error
in weighing stones he will sell only 900 gram in 105 but he has paid
900*(100/1000)=90 rs for 900 grams. net profit=105-90=15 Rs...
percentage=100*(15/90)=16^2/3
13. Two merchants sell an article each for Rs.1000.one of them computes
profit as a % of cost price, while the second calculates it incorrectly as a %
of selling price. If both of them claim to have made a profit of 10%, who made
more profit and by what amount? (1 Mark)
A) second
and 9 rs
B) second
and 10 rs
C)first and
9 rs
D)first and
10 rs
Solution:- first
merchant get profit of 10% from cp=> (cp*110/100)=1000 => cp=Rs.909
so first merchant get profit of Rs.91.
second merchant get profit of 10% from sp=> profit=1000*10/100 =Rs.100
so the profit of second merchant is high and it is more than first merchant by
9Rs.