Ace the calculations of profit and loss

Hyderabad: This article is in continuation to the last article on preparation for the Sub-Inspector of Police recruitment exam. Here are some practice questions, answers and explanations on the Profit and Loss topic. 1. The owner of a cell phone shop charges his customer 23% more than the cost price. If a customer paid Rs […]

Hyderabad: This article is in continuation to the last article on preparation for the Sub-Inspector of Police recruitment exam. Here are some practice questions, answers and explanations on the Profit and Loss topic.

1. The owner of a cell phone shop charges his customer 23% more than the cost price. If a customer paid Rs 7, 011 for a cell phone, then what was the cost price of the cell phone?

A. Rs 5, 845 B. Rs 6,750 C. Rs 5, 900 D. None of the above

Ans: D

Explanation:

Selling Price = Rs 7011

123% of CP = SPa

Therefore, CP = Rs 7,011× 100/123 = Rs 5700

2. The cost price of 16 articles is the same as the selling price of 12 articles. Find the loss/profit percentages.

A. 30% B. 32.50% C.100/3% D. 40%

Ans: C

Explanation:

The gain is 4 out of 12 articles.

Therefore, gain percentage = (4/12) × 100 = 100/3%.

3. Raju purchased an item for Rs 4,500 and sold it at the gain of 15%. From that amount he purchased another item and sold it at the loss of 10%. What is his overall gain/loss?

A. Gain of Rs 151.50 B. Gain of Rs 157.50

C. Loss of Rs 165              D. Neither gain nor loss

Ans: B

Explanation:

1st SP = Rs 4500 15% of 4500 = Rs 4500 Rs 675 = Rs 5175

2nd CP = Rs 5175

2nd SP = Rs.5175 – 10% of 5175 = Rs 4657.50

Overall gain = Rs 4657.50 – 4500 = Rs 157.50.

4. A shopkeeper labelled the price of his articles so as to earn a profit of 30% on the cost price. He then sold the articles by offering a discount of 10% on the labelled price. What is the actual percent profit earned in the deal?

A. 18% B. 15% C. 17% D. Cannot be determined

Ans: C

Explanation:

Let the CP of the article = Rs 100.

Then labeled price = Rs 130.

SP = Rs 130 – 10% of 130 = Rs 130 – 13 = Rs 117

Gain = Rs 117 – Rs 100 = Rs 17

Therefore, gain/profit percent = 17%.

Note: If two percentage changes are there, then

Net percentage change = A B AB/100

If it is profit percentage or increase value, take positive value and if it is loss percentage or decrease value, take negative value. After simplification if the final result is positive, that is profit percentage, if the final result is negative, that is loss percentage.

Above question A = 30%, B = – 10%

Net percentage change = 30 – 10 (30 × (-10))/100 = 17

Final result is positive, therefore it is profit.

=>; Profit is 17%

5. Profit earned by an organisation is distributed among officers and clerks in the ratio of 5:3 respectively. If the number of officers is 45 and the number of clerks is 80 and the amount received by each officer is Rs 25,000. What was the total amount of profit earned?

A. Rs 22 lakhs B. Rs 18.25 lakhs

C. Rs 18 lakhs D. Rs 23.25 lakhs

Ans: C

Explanation:

The total amount distributed among 45 officers = Rs 45 × 25000 = Rs 11, 25,000.

Let the amount distributed to 80 clerks be ‘x’.

Then 1125000/x = 5/3, therefore, x = Rs 6,75, 000.

Therefore, the total profit = Rs 1125000 675000 = Rs 18 lakhs.

By Banda Ravipal Reddy

Director, SIGMA

Sai Institute of General Mental Ability

Hyderabad