Let’s deal with the nuances 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. A merchant sells his two cars – one at 15% loss and another at 12% profit. If the cost prices of the two cars are in the ratio of 1:2, what is his percent profit or loss?

A. 3% profit B. 2% loss

C. 2% profit D. 1.2%loss

Ans: A

Explanation:

Given that CPs are in the ratio 1:2

Therefore let the CPs be Rs 100 and Rs 200 respectively,

1st SP = 100 – 15% of 100 = Rs 85

2nd SP = 200 12% of 200 = Rs 224

Total CP = Rs 300 Total SP = 85 224 = Rs 309

Profit = Rs 309 – 300 = Rs 9.

Profit percent = 9 × 100/300 = 3% profit.

2. The profit earned after selling an article for Rs 675 is twice the loss incurred after selling the article for Rs 435. What is the cost price of the article?

A. Rs 450 B. Rs 595

C. Rs 400 D. None of the above

Ans: D

Explanation:

Let ‘x’ be the CP of the article.

i.e. Rs 675 – x = 2(x-435)

675 – x = 2x – 870

675 870 = 3x, therefore, x = 1545/3 = Rs 515.

3. A sells an article which costs him Rs 400 to B at a profit of 20%. B then sells it to C, making a profit of 10% on the price he paid to A. How much does C pay B?

A. Rs 450             B. Rs 500

C. Rs 528             D. Rs 555

Ans: C

Explanation:

Given that

Cost price for B = 120% of Rs 400

= Rs (120/100 × 400) = Rs 480

Cost price for C = 110% of Rs 480

                         = Rs (110/100 × 480) = Rs 528.

4. A fruit seller sells mangoes at the rate of Rs 9 per kg and thereby loses 20%. At what price per kg, he should have sold them to make a profit of 5%?

A. Rs 11.81                        

B. Rs 13

C. Rs 10                                   

  D. Rs 12.81

Ans: A

Explanation:

     Let selling price be Rs ΄x΄.

Given that there is a loss of 20% by selling the mangoes at the rate of Rs 9 per kg.

To make a profit of 5% he should have sold them to the price of x

Therefore x = (9 × 105) /80 = Rs 11.81

5. If on selling 12 notebooks, a seller makes a profit equal to the selling price of 4 notebooks, what is his percent profit?

A. 50 % B. 45% C. 35% D. 36 %

Ans:A

Explanation:

Gain% = (profit/ cost price) × 100

Given that profit = 4 and C.P = 8

Then Gain% = ( 4/8 × 100) = 50%

By Banda Ravipal Reddy

Director, SIGMA

Sai Institute of General Mental Ability

Hyderabad