Profit and Loss Questions

FACTS  AND  FORMULAE  FOR  PROFIT  AND  LOSS  QUESTIONS

 

 

Selling Price (SP) : The price at which the shopkeeper sells the goods is called the selling price (SP) of the goods sold by the shopkeeper.

 

Profit : If the selling price of an article is more than its cost price, then the dealer (or shopkeeper) makes a profit (or gain)

i.e Profit = SP - CP;       SP > CP

 

Loss : If the selling price of an article is less than its cost price, then the dealer suffers a loss.

i.e loss = CP - SP;        CP > SP

 

IMPORTANT FORMULAE


1. Profit percentage = ProfitC.P×100

 

2. Loss percentage = LossC.P×100

 

3.S.P=100+Gain %100×C.P = 100-Loss%100×C.P

 

4. C.P=100100+Gain %×S.P = 100100-Loss %×S.P 

5. If an article is sold at a gain of say 35%, then SP = 135% of CP

6. If an article is sold at a loss of say 35%, then SP = 65% of CP

7. 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 % =Common Loss and Gain %10 2=x102

 

8. If a trader Professes to sell his goods at cost price, but uses false weihts, then 

Gain % =ErrorTrue Value - Error×100%

Q:

On selling rice for Rs. 45 per kg, a shopkeeper bears loss of 20%. To earn a profit of 20%, the selling price should be

A) Rs. 67.50 B) Rs. 65
C) Rs. 70 D) Rs. 60
 
Answer & Explanation Answer: A) Rs. 67.50

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Q:

A wholesaler had 200 dozens of mangoes. He sold some of these mangoes at 20% profit and the rest at 10% profit, so that he made 13% profit on selling all the mangoes. How many mangoes (in dozens) did he sell at 20% profit?

A) 140 B) 60
C) 80 D) 120
 
Answer & Explanation Answer: B) 60

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Q:

In what ratio sugar at Rs 30/kg should be mixed with sugar at Rs 45/kg so that on selling the mixture at Rs 42/kg there is a profit of 20%?

A) 2 : 1 B) 2 : 3
C) 5 : 2 D) 3 : 7
 
Answer & Explanation Answer: A) 2 : 1

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Q:

If a shop keeper marks his goods for a certain amount so as to get 25% gain after allowing a discount of 20%, then his marked price is

A) Rs.156.25 B) Rs.146.25
C) Rs.166.25 D) Rs.150.25
 
Answer & Explanation Answer: A) Rs.156.25

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Q:

Shivam Industries installed a flour mill for Rs. 300,000 five years ago. If the fixed annual rate of depreciation is 5% and they sold the mill for Rs. 250,000 their gain/loss % is?

 

 

A) No gain - No loss B) Loss 10%
C) Gain 12.5% D) Gain 10%
 
Answer & Explanation Answer: D) Gain 10%

Explanation:

Given that mill worth originally =3ooooo

Depreciation for 1 yr =300000x5/100= Rs. 15000

Then, depreciation for 5yrs = Rs. 75000

Value after 5yrs = 300000 - 75000 = Rs. 225000

Given Selling Price of the mill = Rs. 250000

Sp > CP

Gain = 250000 - 225000 = Rs. 25000

Gain% = 25000/250000 x 100 = 10%.

 

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Q:

Cost price of a calculator is Rs 495. If the profit percentage is 40%, then what is the value (in Rs) of profit?

A) 226 B) 198
C) 186 D) 218
 
Answer & Explanation Answer: B) 198

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Q:

A trader sells two items at the rate of Rs 400 each. If he gains 15% on one and losses 15% on other, then what is the value (in Rs) of loss ?

A) 18.41 B) 22.14
C) 20.25 D) 24.36
 
Answer & Explanation Answer: A) 18.41

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Q:

A milkman buys milk at Rs 24 per litre. He adds 1/5 of water to it and sells the mixture at Rs 32 per litre. What will be his gain (in %)?

A) 50 B) 40
C) 30 D) 60
 
Answer & Explanation Answer: D) 60

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