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

successive-discounts-formulas-of-profit-and-loss

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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