Get busy solving profit and loss problems

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 along with explanations on the Profit and Loss topic.

1. When a producer allows 26% commission on the retail price of his product, he earns a profit of 3.6%. What would be his profit per cent if the commission is reduced by 14%.

A. 22.4% B. 20.4% C. 23.4% D. 21.4%
Ans: B

Explanation:
Let retail price = Rs 100

Then commission = Rs 26

Selling price = Rs (100-26) = 74
But profit = 3.6%

C.P = Rs (100/103.6 × 74) = Rs 1000/14
New commission = Rs 14
New selling price = (100-14) = 86

Gain = 86 – 1000/14 = 204/14

Gain % = ( 204/14 × 14/1000 × 100)% = 20.4%

2. At what percentage above the C.P must an article to marked so as to gain 24% after allowing a customer a discount of 7%?
A. 66 2/3% B. 35 1/3% C. 33 1/3% D. 43 1/3%

Ans: C

Explanation:
Let cost price = Rs 100

Then selling price = 124

Let marked price be x

Then 93% of x = 124

(93/100) x = 124

x = 124 × 100/93 = 133 1/3

Marked price = 33 1/3% above C.P.

3. A dealer sold 1/3rd of his articles at a gain of 30% and the remaining at cost price. Find the gain earned by him in the entire transaction.
A. 25% B. 50% C. 5% D. 10%

Ans: D
Explanation:

C.P of 1/3rd = Rs (1/3)x
C.P of 2/3rd = Rs (2/3)x

Total selling price = Rs [(130% of 1/3 x) 2x/3]
= Rs (13x/30 2x/3) = 13x 20x/ 30 = 33x/30 = 11x/10

Gain = Rs (11x/10 – x) = Rs x/10

Gain % = x/10 × 1/x × 100 = 10%

4. A fair price shopkeeper takes 15% profit on has goods. He last 15% goods during there. His loss present is:

A. 2.25% B. 2.00% C. 2.75% D. 2.50%
Ans: A

Explanation:
Suppose he has 100 items. Let cost price of each item be 1 Re

Total cost = Rs 100
Goods left after theft = 85
Selling price of each item = 1.15 Re
Total sale = Re (1.15 × 85) = Rs 97.75
Hence loss% = 2.25/100 × 100 = 2.25%

5. On selling 15 balls at Rs 630, there is a loss equal to the cost price of 6 balls. The cost price of a ball is:

A. Rs 90 B. Rs 75 C. Rs 80 D. Rs 70
Ans: D
Explanation:
(Cost price of 15 balls) – (selling price of 15 balls) = cost price of 6 balls

Cost price of 9 balls = selling price of 15 balls = Rs 630

C.P of 1 ball = 630/9 = Rs 70

6. A CD – music system when sold at a certain price gives a gain of 30%. If sold for thrice that price, the gain percent will be:

A. 320% B. 270% C. 290% D. 300%
Ans: C

Explanation:

Let the cost price = 100
Selling price = 130
Therefore, new selling price = 130 × 3 = 390
Gain = 390-100 = Rs 290

Gain% = 290 /100 × 100 = 290%

7. A shopkeeper increased the price of a product by 50% and later on reduced the price by 50%. Shopkeeper’s loss was:

A. 40% B. 30% C. 50% D. 25%
Ans: D

Explanation:
Let the C.P = x

S.P = 150% of x = 150/100 × x = 3/2 x
New selling price = 50% old selling price = 50/100 × 3/2 x = (3/4)x
Loss = C.P – new selling prices

= x – 3/4 x = 1/4 x

Loss % = (1/4)x/ x × 100 = 25%

By Banda Ravipal Reddy

Director, SIGMA
Sai Institute of General Mental Ability
Hyderabad