## PROFIT AND LOSS

In this article, we will learn the different types of questions asked on Profit and Loss topic in MBA CET/CMAT/MAT/ATMA etc. exams. First of all, let’s clear the basic concepts.

C.P – Cost Price

S.P – Selling Price

Profit is money earned when a certain commodity is sold at price higher than Cost Price.

Profit(P) = S.P – C.P

A Loss is money lost when a certain commodity is sold at price lower than Cost Price.

Loss(L) = C.P – S.P

Profit Percentage, as well as Loss Percentage, is carried with respect to C.P only.

Formula :

Profit% = (P/C.P)*100

Loss% = (L/C.P)*100

**Sum 1. **

Tom buys a cycle for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the cycle for Rs. 5800, his gain in percent is:

a. (32/7)%

**b. (60/11)%**

c. 10%

d. 12%

Solution:

C.P = Rs.(4700+800) = Rs. 5500

S.P = Rs. 5800

Profit = S.P – C.P = 5800 – 5500 = Rs. 300

Profit% = (300/5500)*100 = (60/11)%

**Sum 2.**

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

Solution:

Let C.P of each article be Rs. 1, therefore C.P of x articles = Rs. x

Therefore S.P of x articles = Rs. 20

Profit = Rs. (20 – x)

Therefore (20 – x)/x * 100 = 25

2000 – 100x = 25x

x = 16

**Sum 3.**

The profit triples when the selling price is doubled. What is profit percent?

**a. 100**

b. 120

c. 33.33

d. 66.66

Solution:

Let C.P be Rs.x and S.P be Rs.y

then, 3(y – x) = (2y – x)

y = 2x

Profit = Rs. (y – x) = Rs.(2x – x)= Rs.x

Therefore Profit%=(x/x)*100 = 100

**Sum 4.**

Tom buys a bag for Rs. 1400 and sells it at a loss of 15%. What is the selling price of the bag?

a. Rs. 1090

b. Rs. 1160

**c. Rs. 1190**

d. Rs. 1202

Solution:

S.P = 85% of Rs. 1400 = Rs. (85/100)*1400 = Rs. 1190

**Sum 5.**

When a second-hand bike is sold for Rs. 18,700, the owner loses 15%. At what price must that bike be sold in order to gain 15%?

a. Rs. 21,000

b. Rs. 22,500

**c. Rs. 25,300**

d. Rs. 25,800

Solution:

(85/18700) = (115/x)

x = (18700*115)/85 = Rs. 25,300

Click here to attempt topic test on Profit & Loss

**Toppers**

- rushikesh chavan scored - 100%
- kartik Talwekar scored - 80%
- Hrishika scored - 70%
- Vatsal Dedhia scored - 60%
- Tarun bhavnani scored - 60%

Click here to practice more tests for Free

**Profit & Loss Free PDF Download**

**Must Explore**

1.B

2.D

3.D

4.C

5.C