Multiple Choice Questions (MCQ) on profit and loss for competitive exams like Bank, SSC, Railways, Insurance, CDS, AFCAT, CAPF AC, CLAT, Police exams & State PSU exams
1. A shopkeeper labelled the price of his articles so as to earn a profit of 30% on the cost price. He,then sold the articles by offering a discount of 10% on the labelled price. What is the actual percent profit earned in the deal?
(a) 18%
(b) 15%
(c) 20%
(d) Cannot be determined
(e) None of these
Solution: (e)
Let the cost price of the articles be ₹100
Marked Price = ₹130
After giving a discount of 10% the selling price of the
articles = 0.9 × 130 = 117
So, actual profit percent = \(\displaystyle \frac{{117-100}}{{100}}\times 100=17\%\)
2. The owner of an electronic store charges his customer 11 % more than the cost price. If a customer paid ₹1,33,200 for an LED T.V., then what was the original price of the T. V. ?
(a) ₹ 1,20,000
(b) ₹ 1,14,500
(c) ₹ 1,22,500
(d) ₹ 1,18,000
(e) None of these
Solution: (a)
Let original price of TV = x
Customer paid = 111% of x = ₹ 133200
x = \(\displaystyle \frac{{133200\times 100}}{{111}}=120000\)
3. Mohan sold an item for ₹ 4,510 and incurred a loss of 45%. At what price should he have sold the item to have gained a profit of 45%?
(a) ₹ 10,900
(b) ₹ 12,620
(c) ₹ 11,890
(d) Cannot be determined
(e) None of these
Solution: (c)
Let cost price of article = x
Now 55% of x = Rs. 4510
Therefore x = \(\displaystyle \frac{{4510}}{{55}}\times 100=8200\)
To gain profit of 45% selling price is 145 % of 8200 is ₹11890
4. Meera purchased 23 bracelets at the rate of `160 per bracelet. At what rate per bracelet should she sell the bracelets so that profit earned is 15% ?
(a) ₹ 184/-
(b) ₹ 186/-
(c) ₹ 192/-
(d) ₹ 198/-
(e) None of these
Solution: (a)
Cost of 23 bracelet purchased at rate of ₹ 160/bracelet
= ₹ 23 × 160 = ₹ 3680
If profit earned is 15%, then
Profit amount = \(\displaystyle \frac{{3680\times 15}}{{100}}=552\)
Total amount Meera have after selling 23 bracelets
= 3680 + 552 = 4232
S.P. of one bracelet = \(\displaystyle \frac{{4232}}{{23}}=184\)
5. A certain number of capsules were purchased for ₹ 21,615 more capsules could have been purchased in the same amount if each capsule was cheaper by ₹ 10. What was the number of capsules purchased?
(a) 6
(b) 14
(c) 8
(d) 12
(e) 9
Solution: (d)
Let x be the price of one capsule y be the total number of capsule.
xy = 216 …(1)
(x – 10) (y + 15) = 216 …(2)
From eqs (1) and (2)
\(\displaystyle \begin{array}{l}\left( {\frac{{216}}{y}-10} \right)(y+15)=216\\(216-10y)(y+15)=216y\\216y+216\times 15-10{{y}^{2}}-150y=216y\\216y+3240-10{{y}^{2}}-150y=216y\\-10{{y}^{2}}-150y+3240=0\\{{y}^{2}}+15y-324=0\\y=12\end{array}\)
6. Pure milk costs ₹ 16 per litre. After adding water the milkman sells the mixture ₹ 15 per litre and thereby makes a profit of 25%. In what respective ratio does he mix milk with water?
(a) 3 : 1
(b) 4 : 3
(c) 3 : 2
(d) 5 : 3
(e) 4 : 1
Solution : (a)
SP of the mixture = ₹ 15
Therefore, CP of the mixture = \(\displaystyle 15\times \frac{{100}}{{125}}=12\)
Now, by the rule of mixture,
\(\displaystyle \Rightarrow \)Ratio of milk and water in the mixture
= 12 : 4 = 3 : 1
Alternate method
We know:
Profit = Selling Price – Cost Price
Let’s assume that the cost price of the mixture is x.
Profit = Selling Price – Cost Price
0.25x = 15 – x
0.25x + x = 15
x = 15/1.25
x = 12
So, the cost price of the mixture is Rs. 12 per litre.
We know that the cost price of pure milk is Rs. 16 per litre.
Let’s assume that the ratio of milk to water in the mixture is a:b.
This means that for every 4 parts of the mixture, 3 parts are pure milk, and 1 part is water. So, the respective ratio of milk to water in the mixture is 3:1
One more method
Let X is the cost of pure Milk. Then,
Cost of Mixture,
X + 25% of X = 15
100X + 25X = 15 × 100
125X = 15 × 100
X = 1500/125 = Rs. 12.
So, Milk of Rs. 12 sold at Rs. 15.
Part of Milk buyer gets in 12,
In Rs. 16 = 1 lit milk.
So, in 12 = \(\displaystyle \frac{{12}}{{16}}=\frac{3}{4}\) part milk he gets and \(\displaystyle \frac{1}{3}\) part water.
Therefore ratio Milk : water
\(\displaystyle \frac{3}{4}:\frac{1}{3}\) = 3 : 1
7. A man sells three motors for ₹ 5,400, ₹ 3,300 and ₹ 4,350 respectively. He makes 20% profit on the first and 10% profit on the second but on the whole, he loses \(\displaystyle 9\frac{3}{8}\%\). What did the third motor car cost him ?
(a) ₹ 6500
(b) ₹ 6900
(c) ₹ 5100
(d) ₹ 7200
(e) None of these
Solution: (b)
S.P. for the first car = ₹ 5,400 and profit = 20%
We know,
CP= \(\displaystyle \frac{{100}}{{100+profit\%}}\times SP\)
\(\displaystyle \Rightarrow \)C.P. for the first car = \(\displaystyle \frac{{100}}{{120}}\times 5400=4500\)
Similarly,
S.P. for the second car = ₹ 3,300 and profit = 10%
\(\displaystyle \Rightarrow \)C.P. for second car = \(\displaystyle \frac{{100}}{{110}}\times 3300=3000\)
and loss = \(\displaystyle \frac{{75}}{8}\%\)
S.P. of three cars = 5,400 + 3,300 + 4350 = ₹ 13,050
\(\displaystyle \Rightarrow \)Total C.P. for the three cars = \(\displaystyle \frac{{100\times 8}}{{725}}\times 13050\)
= 14,400
Therefore, C.P. for third car = 14,400 – 4,500 – 3,000 = ₹ 6,900
8. The marked price of a watch was ₹720. A man bought the same for ₹550.80 after getting two successive discounts, the first being 10%. The second discount rate is
(a) 12%
(b) 14%
(c) 15%
(d) 18%
(e) None of these
Solution: (c)
Let the second discount be x%. Then(100 – x)% of 90% of 720 = 550.80
9. A man bought a horse and a carriage for ₹ 3000. He sold the horse at a gain of 20% and the carriage at a loss 10%, thereby gaining 2% on the whole. Find the cost of the horse.
(a) ₹ 1000
(b) ₹ 1200
(c) ₹ 1500
(d) ₹ 1700
(e) None of these
Solution: (b)
Let the C.P. of horse = ₹ x
Then the C.P. of carriage = ₹ (3000 – x)
20% of x – 10% of (3000 – x) = 2% of 3000
\(\displaystyle \Rightarrow \)\(\displaystyle \frac{x}{5}-\frac{{(3000-x)}}{{10}}=60\)
\(\displaystyle \Rightarrow \)2x – 3000 + x = 600
\(\displaystyle \Rightarrow \) 3x = 3600
\(\displaystyle \Rightarrow \) x=₹ 1200
10. A manufacturer sells a pair of glasses to a wholesale dealer at a profit of 18%. The wholesaler sells the same to a retailer at a profit of 20%. The retailer in turn sells them to a customer for ₹ 30.09, thereby earning a profit of 25%. The cost price for the manufacturer is
(a) ₹15
(b) ₹ 16
(c) ₹ 17
(d) ₹ 18
(e) None of these
Solution: (c)
Let the cost price of manufactures is = P
Selling price of manufacturer = \(\displaystyle p+p\times \frac{{18}}{{100}}=\frac{{59p}}{{50}}\)
Wholesaler selling price = \(\displaystyle \frac{{354p}}{{250}}+\frac{{354p}}{{250}}\times \frac{{20}}{{100}}\)
= \(\displaystyle \frac{{59p}}{{50}}+\frac{{59p}}{{250}}=\frac{{354p}}{{250}}\)
Retailer selling price = \(\displaystyle \frac{{354p}}{{250}}+\frac{{354p}}{{250}}\times \frac{{25}}{{100}}\)
= \(\displaystyle \frac{{354p}}{{240}}+\frac{{177p}}{{500}}=\frac{{805p}}{{500}}\)
Now, \(\displaystyle \frac{{805p}}{{500}}=30.09\)
\(\displaystyle \Rightarrow \) P=17