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Profit and Loss

Profit and Loss - Important Points


1.

If selling price is doubled, the profit triples. Find the profit percent ?

A. 100%

B. 200%

C. 300%

D. 400%

Discuss Work Space

Answer: option a

Explanation:

  CP       SP     Profit
 100       x       x - 100
 100      2x     2x - 100

Given, 2x - 100 = 3(x - 100)
                = 3x - 300
             x = 200
Profit % = (200 - 100)/100*100 = 100%


2.

If the cost price of 12 articles is equal to the selling price of 8 articles, the gain percent is ?

A. 12%

B. 30%

C. 50%

D. 60%

Discuss Work Space

Answer: option c

Explanation:

CP*12 = SP*8
SP/CP = 12/8 = 3/2
Profit % = (SP - CP)/CP*100
             = (SP/CP)-1 * 100
             = (3/2 - 1) *100 = 50%


3.

The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%, then the value of x is:

A. 15

B. 16

C. 18

D. 25

Discuss Work Space

Answer: option b

Explanation:

CP*20 = SP*x
Profit % = (SP - CP)/CP*100
         = [(SP/CP) - 1] * 100
         = (20/x - 1) *100 = 25%
20/x - 1 = 1/4
     20/x = 5/4
          x = 16


4.

A Shopkeeper sells two articles at Rs. 2000 each, making a profit of 20% on the first article and a loss of 20% on the other. Find the net Profit or loss that he makes?

A. 4%

B. 5%

C. 6%

D. 8%

Discuss Work Space

Answer: option a

Explanation:

SP of first article = Rs.2000
Profit = 20%
CP * 120% = SP
CP = SP/120% = 2000/(120/100)
             = 5000/3

SP of Second Article = Rs. 2000
Loss = 20%
CP*80% = SP
CP = SP/80% = 2000/(80/100)
            = 2500

CP of both article = 5000/3 + 2500
                   = 2500*(5/3)

Loss = 2500*(5/3) - 4000 = 500/3
% Loss = [(500/3)/2500*(5/3)]*100
       = 4%


5.

What profit percent is made by selling an article at a certain price, if by selling at 2/3rd of that price, there would be a loss of 20% ?

A. 30%

B. 25%

C. 15%

D. 20%

Discuss Work Space

Answer: option d

Explanation:

Assuming CP2 = 100 and SP2 = 80, there is a loss of 20%.
SP2 = 2/3 of SP1
=> SP1 = 120

CP      SP     Profit%
100     120      +20          
100     80       -20