Profit and Loss – Aptitude Questions and Answers Practice Now!!
Profit and Loss
Profit and loss principles play a central role in economics and the accounting field. The formula of profit and loss is used in mathematics to calculate the selling price of a product and to explain how profitable a business is. Every product has a cost price and selling price. We may determine the profit earned or the loss of money for a given commodity based on the values of those prices. The important terms covered here are cost price and fixed, variable and semi-variable cost, selling price, marked price, list price, margin, etc.
Profit and Loss – Basic Definitions & Formulas
- Cost price (C.P.): This is the price at which an article is purchased.
- Selling price (S.P.): This is the price at which an article is sold.
- Profit or Gain: If the selling price is more than the cost price, the difference between them is the profit incurred
- Loss: If the selling price is less than the cost price, the difference between them is the loss incurred.
Formulas
- Gain = (S.P.) – (C.P.)
- Loss = (C.P.) – (S.P.)
- Gain % = (Gain / CP) * 100
- Loss % = (Loss / CP) * 100
- SP = [(100 + Gain%) / 100] * CP
- SP = [(100 – Loss %) / 100]*CP
- If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.
- If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.
- When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%, then the seller always incurs a loss given by:
Loss %=(Loss % ∗ Gain %) %
100
- If a trader professes to sell his goods at cost price but uses false weights, then Gain % = [Error/(True value -Error)]*100
Profit & Loss Shortcuts
Aptitude Profit and Loss – General Questions & Answers
1.Find profit or loss: C.P = Rs.870 and S.P = Rs.770
Answer: Option D (Rs.100)
2. The cost price of 20 items is identical to the selling price of x items. If the profit is 25%, the value of x will be:
- A. 15
- B. 16
- C. 18
- D. 25
Answer: Option B (16)
3. The profit is 320% of the cost in a certain store. If the cost increases by 25 percent but the selling price remains constant, about what percentage of the selling price is the profit?
- A. 30%
- B. 70%
- C. 100%
- D. 250%
Answer: Option B (70%)
4. At 6 a vendor purchased toffees for a rupee. How many must he sell for a rupee to earn 20%?
- A. 3
- B. 4
- C. 5
- D. 6
Answer: Option C (5)
5. By selling 33 m of carpet a man loses a quantity equal to 3 m of the carpet selling price. Find its percent gain or loss.
- A. 8 1/3%
- B. 2/3%
- C. 8 1/2%
- D. 7 3/4%
Answer: Option A (81/3%)
6. If the cost price is 25% of the selling price. What is the percentage of profit, then?
- A. 150%
- B. 200%
- C. 300%
- D. 350%
Answer: Option C (300%)
7. If a man reduces a fan’s sales price from Rs.400 to Rs.380, his loss will increase by 2%. The fan’s cost price is
- A. Rs. 480
- B. Rs. 500
- C. Rs. 600
- D. Rs. 1000
Answer: Option D (Rs. 1000)
8. A distributor bought bananas for a rupee at 6. How many must he sell for a rupee to gain 20%?
- A. 3
- B. 4
- C. 5
- D. 6
Answer: Option C (5)
9. An electronics store’s owner charges his customer 22% more than the cost price. If a consumer has charged Rs 10,980 for a DVD player then what was the DVD player’s cost price?
- A. Rs 8000
- B. Rs 8800
- C. Rs 9500
- D. Rs 9000
Answer: Option D (Rs 9000)
10. A shopkeeper sets an item’s marked price 35% above its cost level. The 8% discount allowed to obtain is
- A. 20%
- B. 27%
- C. 31%
- D. 43%
Answer: Option A (20%)
11. A merchant sold an item at a loss of 10%. Had he sold it Rs 450 more, the cost price would have gained 8%. Find the cost price?
- A. Rs 1200
- B. Rs 1800
- C. Rs 1500
- D. Rs 2500
Answer: Option D (Rs 2500)
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