Understanding the workings of profit and loss for police recruitment exam

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. On an order of 5 dozen boxes of a consumer product, a retainer receives an extra dozen free. This is […]

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. On an order of 5 dozen boxes of a consumer product, a retainer receives an extra dozen free. This is equivalent to allowing him a discount of:
A. 50/3 % B. 25 % C. 18 % D. 20 %
Ans: A

Explanation:
Given that retainer get 1 dozen out 6 of dozens free.
Discount = (discount amount / market price) × 100
= (1/6 × 100) = 50/3 %

2. 100 oranges are bought at the rate of Rs 350 and sold at the rate of Rs 48 per dozen. The percentage of profit or loss is:
A. 14 2/7 % gains B. 14 2/7 % loss
C. 15 % gains D.15 % loss
Ans: A

Explanation:
Given that
Cost price of 100 oranges is Rs 350
From this cost price of 1 orange is Rs 3.50
Selling price of 1 dozen oranges is Rs 48
S.P of one orange is (48/12) = Rs 4
Gain% = profit/ cost price × 100
Here profit = 4-3.50 = 0.50
Then Gain% = (0.50/3.50) × 100 = 14 2/7 % gains

3. A man sells two flats at the rate of Rs 1.995 lakh each. On one he gains 5% and on the other, he loses 5%. His gain or loss percent in the whole transaction is:
A. 0.25 % loss B. 0.25 % gains
C. 2.5 % loss D. 3.5 % gains
Ans: A

Explanation:
Whenever two selling prices are equal, percentage of profit equal to percentage of loss we always get loss only.
% Loss = (x/10) 2
= 25/100 = 0.25

4. A dishonest dealer uses a scale of 90 cm instead of a meter scale and claims to sell at cost price. His profit is:
A. 9 % B.10 % C. 11 % D. None of these
Ans: D

Explanation:
Given that
The C.P of dealer = 90cms
S.P of dealer = 100cms
Then profit = 10cms
%profit of dealer = (profit/ C.P) × 100
= 10/90 × 100 = 11.11%

5. A man gains 20% by selling an article for a certain price. If he sells it at double the price, the percentage of profit will be:
A. 40 % B. 140 % C. 80 % D. 150 %
Ans: B

Explanation:
Let cost price be x.
S.P of an article = 120% of x = 120/100 × x = 6x/5
New S.P = (2 × 6x/5) = 12x/5
Profit = S.P – C.P = 7x/ 5
Gain% = (profit/ cost price) × 100 = (7x/5x × 100) = 140%
Simple Method:
Let CP = Rs 100
SP = Rs 120
New SP = Rs 240
So Profit percentage = 240 – 100 = 140%

6. A sells a good to B at a profit of 20% and B sells it to C at a profit of 25%, if C pays Rs 225 for it, what amount A paid for it?
A. Rs. 150 B. Rs. 430 C. Rs. 250 D. Rs. 330
Ans:A

Explanation:
Let amount be Rs. x
According to the question
125% of 120% of x = 225
x = (225 × 100 × 100/ 125 ×120)
= Rs 150

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