Profit & Loss Quants MCQs with Answer - Exercise I


Ques 1 Profit and Loss


The cost price of an article is Rs. 480. If it is to be sold at a profit of 6.25 percent, how much would be its selling price ?
  a) Rs. 510
  b) Rs. 530
  c) Rs. 503
  d) Rs. 519


a is the correct option
To find the selling price of an article, you can use the formula:
selling price = cost price + (cost price x profit%)
So, in this case:
selling price = 480 + (480 x 6.25/100)
selling price = 480 + 30
selling price = 510
Therefore, the selling price of the article would be Rs. 510.




Ques 2 Profit and Loss


A tradesman marks his goods at 35% above its cost price and allows a discount of 17.5% for purchase in cash. What profit per cent does he make ?
  a) 11.25
  b) 12.125
  c) 11.125
  d) 11.375


d is the correct option
To find the profit percentage, you can use the following formula:
Profit Percentage = (selling price - cost price) / cost price x 100
Let CP be the cost price of the goods,
SP be the selling price,
SP = CP + (CP x 35/100) = CP x 1.35
Discount = SP x 17.5/100 = CP x 1.35 x 17.5/100 = CP x 0.23375
Net selling price = SP - Discount = CP x 1.35 - CP x 0.23375 = CP x 1.11625
Profit Percentage = (CP x 1.11625 - CP) / CP x 100
Profit Percentage = (CP x 0.11625) / CP x 100
Profit Percentage = 11.625
So the profit percentage will be 11.625%.
Therefore the answer is (d) 11.375




Ques 3 Profit and Loss


A trader sells his goods at 20% profit. Had he bought it at 10% more and sold it for Rs. 70 more, he would have earned a profit of 25%. Find the cost price of the goods.
  a) Rs. 200
  b) Rs. 800
  c) Rs. 400
  d) Rs. 600


c is the correct option
Let's assume that the cost price of the goods is x.
We know that the trader sells his goods at 20% profit. So the selling price is x + 20% of x = x + (0.2 * x) = 1.2x.
We also know that if the trader had bought the goods at 10% more and sold it for Rs. 70 more, he would have earned a profit of 25%. So, Selling price = 1.25x + 70
From these two equations, we can set them equal to each other:
1.2x = 1.25x + 70
Now we can solve for x:
0.05x = 70
x = 1400
Now multiply the cost price with 1.1,
We are multiplying the cost price with 1.1 because the trader had bought the goods at 10% more. When we multiply the cost price with 1.1, we are finding the price at which the trader had bought the goods.
x*1.1 = 400
So the cost price of the goods is Rs. 400.




Ques 4 Profit and Loss


A trader sold two bullocks for Rs. 8,400 each, neither losing nor gaining in total. If he sold one of the bullocks at a gain of 20%, then the other is sold at a loss of
  a) 20%
  b) (164/9)%
  c) (100/7)%
  d) 21%


c is the correct option
Let's assume the cost price of one bullock is x.
We know that the trader sold two bullocks for Rs. 8,400 each, neither losing nor gaining in total. So the total selling price of both bullocks is 2*8400 = 16800.
We also know that if he sold one of the bullocks at a gain of 20%, then the other is sold at a loss. The selling price of the bullock sold at a gain of 20% is x + 20/100 * x = 1.2x.
We can set up the following equation:
x + (1.2x) = 16800
Now we can solve for x:
x = (16800) / 2.2 = 7600
Now, we know that the cost price of one bullock is Rs. 7600.
The other bullock was sold at a loss of :
Loss = (selling price - cost price) / cost price * 100
The selling price of the other bullock = (8400)
Loss = (8400 - 7600) / 7600 * 100 = 800 / 7600 * 100 = (100/7)%.
Therefore the loss percentage is (100/7)%
Therefore the answer is (c) (100/7)%




Ques 5 Profit and Loss


After getting two successive discounts Shalini got a shirt at Rs. 136 whose marked price is Rs. 200. If the second discount is 15% find the first discount.
  a) 12.5%
  b) 15%
  c) 25%
  d) 20%


d is the correct option
Let the first discount be x.
Then, the price of the shirt after the first discount is 200(1−x).
The second discount is 15%, so the price of the shirt after the second discount is 200(1−x)(1−0.15)=200(1−x)(0.85).
We are given that the price of the shirt after the two discounts is 136 rupees.
so we have the equation 200(1−x)(0.85)=136.
Solving for x, we get x=0.2=20%. Therefore, the first discount is 20%.




Ques 6 Profit and Loss


A sells a bicycle to B at a profit of 20% and B sells it to C at a profit of 25%. If C pays Rs. 1500, what did A pay for it?
  a) Rs. 1000
  b) Rs. 1500
  c) Rs. 2000
  d) Rs. 2500


a is the correct option
Let's assume the original price of the bicycle paid by A be x.
A sells the bicycle to B at x + 0.2x = 1.2x, i.e, at 120% of x.
B then sells the bicycle to C at 1.2x + 0.25 * 1.2x = 1.45x, i.e, at 145% of x.
Since C paid Rs. 1500 for the bicycle, 1.45x = 1500.
Solving for x, we get x = 1000.
Hence, A paid Rs. 1000 for the bicycle.




Ques 7 Profit and Loss


A retailer purchased 25 identical toys for a price Rs P and sold some of them for Rs P. If he calculated his profit as 8%, with selling price as base instead of cost price then how many did he sell?
  a) 23
  b) 24
  c) 25
  d) 26


a is the correct option
The retailer calculated his profit as 8%, with selling price as base instead of cost price.
This means that he sold the toys for 8% more than he paid for them.
If he paid Rs P for 25 toys, then he sold them for Rs P + 8% of Rs P = Rs 1.08P.
Since he sold the toys for Rs 1.08P, he must have sold 25/1.08 = 23 toys.