A furniture dealer sold two chairs for $300 each. He made a profit of 25 percent on one of the chairs and a loss of 25 percent on theother. What was his overall loss or profit percentage on selling both the chairs?
Given:
To Find: Overall profit or loss% on selling both chairs?
Approach:
2. The cost price of the chairs can be found out using the information given about the selling price and the profit% or loss%
3. Cost Price and profit on chair-1
As we know the selling price and the profit%, we can calculate the Cost price of chair-1. Once we know the cost price, we can calculate profit made on the chair using (2).
4. Cost Price and loss on chair-2
Selling Price = Cost Price - Loss……..(4)
As we know the selling price and the loss%, we can calculate the Cost price of chair-2. Once we know the cost price, we can calculate loss made on the chair using (4).
5. Now, as we know the cost price of the chairs and profit or loss made on the chair, we can calculate the profit or loss% using (1)
Working out:
a. Selling price of the chair = $300
b. Profit% on the chair = 25%
c. So, we can write
2. Cost Price and loss on chair-2
a. Selling price of the chair = $300
b. Loss% on the chair = 25%
c. So, we can write
3. As the loss made on chair-2 is greater than the profit made on chair-2, total
loss made = 100 – 60 = $40
Hence, the shopkeeper made a loss of around 6% on the total transaction
Answer B
A craftsman sold his identical handcrafted items at a profit of 20 percent. Had he charged 20 percent more per item, his profit per
item would have been $9.6 more. What price did he charge, in dollars, for each item?
Given:
To Find: S = ?
Approach:
Working out:
Looking at the answer choices, we see that the correct answer is Option D
The dealer of an electronic store discounted the price of a television and a microwave oven by the same percentage. On which of the two articles did the shopkeeper make a greater profit?
(1) The articles were marked up by the same percentage
(2) The amount of discount was same for both the articles
Step 1 & 2: Understand Question and Draw Inference
Step 3 : Analyze Statement 1 independent
(1) The articles were marked up by the same percentage
We do not know for sure if Insufficient to answer.
Step 4 : Analyze Statement 2 independent
(2) The amount of discount was same for both the articles
We do not know for sure if Insufficient to answer
Step 5: Analyze Both Statements Together (if needed)
Combining both the statements, we have C = C . Hence, the only possible case is P_{t} = p_{m} . Hence the shopkeeper made equal profit on both the items.
Sufficient to answer.
Answer : C
A shoe shop owner lists the price of a pair of shoes as the price at which he purchased the pair from the manufacturer plus a markup
which is equal to 40 percent of the selling price. After some time, he offers a discount on the shoes which is equal to 20 percent of
the selling price. Which of the following best represents the profit, as a percentage of the purchase price, which he earns on selling
the pair of shoes?
Given:
To Find: Profit earned as a % of C
Approach:
Using the fact that Discount = M – S, we will be able to express M in terms of S
Working out:
Looking at the answer choices, we see that the correct answer is Option E
A shopkeeper offers two successive discounts of 20% each on a sweater and still makes a profit of 60%. By what percentage did
the shopkeeper mark-up the price of the sweater?
Given:
To Find: Mark-up% on the sweater?
Approach:
We are also given the profit % on the sweater. Using this, we will be able to find the ratio of Selling Price and Cost Price of the
sweater
Selling Price = Cost Price + Profit
Also, we know that
Working out:
2. Calculating the Cost Price
a. Selling Price = 0.64x
b. Profit% = 60%
c. So, we can write 0.64x = CP + 60% of CP, which gives us CP = 0.4x
3. Calculating Mark-Up%
a. Hence, the price of sweater was marked up by = x – 0.4x = 0.6x. So, using (1), the mark-up5 can be given by
Answer : C
A furniture retailer bought 100 identical chairs at a cost of $20 each. He sold some of the chairs within the first week for $35 each. In the second week, he sold all the remaining chairs for $30 each. If his total profit on the sale of the chairs was greater in the second week than in the first week, which of the following can be the number of chairs sold by the retailer in the second week?
I. 30
II. 60
III. 80
Given:
To Find: Which of the 3 values is/are possible for 100 –z?
Approach:
We’re also given a relation between the profit of 1 and 2 weeks. We’ll use this relation to find the possible values of z.
Working out:
Looking at the answer choices, we see that the correct answer is Option C
A shopkeeper purchased 20 identical units of an item at a cost of $20 per unit. He sold some of the units at a price of $x per unit and the remaining units at $y per unit. What was his gross profit made by selling the 20 units of the item?
(1) The number of units sold at $x per unit was 12
(2) The total revenue generated by selling the 20 units was $880
Step 1 & 2: Understand Question and Draw Inference
Given:
To find: Gross Profit
Step 3 : Analyze Statement 1 independent
Statement 1 says that ‘The number of units sold at $x per unit was 12’
Step 4 : Analyze Statement 2 independent
Statement 2 says that ‘The total revenue generated by selling the 20 units was $880’
Step 5: Analyze Both Statements Together (if needed)
Since we’ve already arrived at a unique answer in Step 4, this step is not required
Answer: Option B
For a manufacturer, the cost of producing x units is given the expression y +kx, where y and k are constants. If the manufacturer sells 100 units at $50 each, his per unit profit for these 100 units is equal to 64 percent of the selling price per unit and if he sells 250 units at $40 each, his per unit profit for these 250 units is equal to 70 percent of the selling price per unit. How much profit in dollars would the manufacturer make if he sold 50 units at $70 each?
Given:
To Find: Profit made on selling 50 units at $70 each
Approach:
Working out:
Thus, the manufacturer made a profit of $2100 on selling 50 units at $70 each.
Answer : D
If the maximum discount that a merchant who doesn’t want to sell an item at a loss can offer on that item is 20%, what will be the
profit percentage that the merchant makes if he sells the item at its marked price?
Given:
To Find: % Profit if the item is sold at its Marked Price
Approach:
Working out:
Looking at the answer choices, we see that the correct answer is Option C
A retailer purchases an item at $700 per piece and sells it at a profit of 30 percent. To encourage the sale of the item in the holiday season, the retailer plans to offer at least two discount coupons to his loyal customers. At the same time, he wants to make sure that his profit margin does not fall below 10 percent. If the customers makes use of the discount coupons in an order which maximizes their discount, which of the following coupons should the retailer offer?
I. $50 off
II. 8% off
III. 10% off
Given:
To Find: Which of the given 3 discount coupons should the retailer offer?
Approach:
Working out:
Looking at the answer choices, we see that the correct answer is Option A
If a man sells x oranges for a dollar, he loses 45 percent. By how much percentage should the man reduce his cost to make a profit
of 10 percent on selling 2x oranges in a dollar?
Given:
x oranges are sold for $1 at a loss of 45%
To Find: The percentage by which the cost should be reduced so that 2x oranges are sold for $1 at a profit of 10%
f. As we know the selling price and the loss %, we can find the Cost Price of x oranges, i.e. CP1
2. Calculating CP2
a. Selling price of 2x oranges = $1
b. Profit% = 10%
c. Now, we know that Selling Price = Cost Price + Profit…..(3)
So, we can find the Cost Price of 2x oranges.
g. Hence, we can find the cost price of x oranges i.e. CP2
Working out:
3. The percentage by which the man should decrease his price =
Thus the man should reduce his price by 75% to make a profit of 10% on selling 2x oranges for a dollar.
Answer C
Jane wants to purchase a history book and a literature book that are sold in regular book shops at $20 and $30 respectively. The same books are also available in an online used-book store at discounts of 20% and 30% respectively on their respective regular book shop prices. At the time of billing, if the number of books purchased is 2 or more, the online used-book store provides an additional discount of 10% on the sum of discounted prices of purchased books, and finally, adds $2.7 to the bill as shipping charges. The amount saved by Jane by purchasing the books from the used-book store will be what percentage of the amount she would have paid for the two books at a regular book shop?
Given:
To Find: % Savings of Jane by buying the 2 books from online used-book store.
Approach:
Working out:
Looking at the answer choices, we see that the correct answer is Option A
An entrepreneur who is planning to set up a restaurant estimates that the monthly costs of running the restaurant will be given by the formula C = 15000 + 2000n + 5m, where C is in dollars, n is the number of employees at the restaurant and m is the number of orders received in the month. He plans to start the restaurant with only 2 employees and to hire 1 new employee each month. He estimates that the average order value at his restaurant will be $50 and that the number of orders per month will increase by 10% month on month. If the estimated number of orders the restaurant receives in the first month of its existence is 1000, then as per this model, after how many months of operation will the restaurant first achieve a profit margin of 20% or more?
Given:
To Find: After how many months of operation is Profit ≥ 20%
Approach:
Working out:
Looking at the answer choices, we see that the correct answer is Option A
Sandy bought a share for $100. At what price should he sell the share to make a profit that is equal to 50 percent of the selling
price?
Given:
To Find: Value of S?
Approach:
Working out:
So, Sandy should sell the share at $200
Correct Option:D
A manufacturer produces items at a fixed monthly cost of $2000 plus a variable cost of $100 per item. If he needs to sell N items to make a monthly profit of $50 per item, what is the value of N?
(1) Each item produced is sold for $200.
(2) If the fixed cost is not included in the cost and the manufacturer still sells N items at the same selling price, he will make a monthly profit of $100 per item.
Step 1 & 2: Understand Question and Draw Inference
Given:
To find: N ( = Number of items to be sold to make a profit of $50 per item)
Step 3 : Analyze Statement 1 independent
Statement 1 says that ‘Each item produced is sold for $200
Sufficient to answer
Step 4 : Analyze Statement 2 independent
Statement 2 says that ‘If the fixed cost is not included in the cost and the
manufacturer still sells N items at the same selling price, he will make a
monthly profit of $100 per item’
So, Statement 2 is sufficient to answer the question
Step 5: Analyze Both Statements Together (if needed)
Since we’ve already arrived at a unique answer in Steps 3 and 4, this step is not required
Answer: Option D
A local grocer purchased eggs at a cost of c dollars per dozen each morning and sold all of them by the day end at a cost of s dollars per dozen. He made a profit of 100% on the sale of eggs each day. One morning there was a minor accident at the grocer’s shop in which some of the eggs he had bought that morning broke and therefore, were rendered unsaleable. The grocer sold the remaining eggs at their usual selling price and made a profit of 50% on the sale of eggs that day. What percentage of the eggs bought by the grocer that morning broke in the accident?
Given:
To Find: % of eggs that broke = ?
Approach:
Working out:
Looking at the answer choices, we see that the correct answer is Option A
Rafael spent his pocket money of $150 to buy three different articles A, B and C from the same shopkeeper. Rafael used 30 percent of his pocket money to buy article A, which was discounted by 10 percent, 30 percent of his pocket money to buy article B, which was discounted by 25 percent and the rest of the money to buy article C, which was discounted by 50 percent. If articles A, B and C were marked up by 25 percent, 100 percent and 140 percent respectively, what was the percentage profit made by the shopkeeper on selling the articles?
Given:
To Find: Profit % of the shopkeeper on selling the articles A, B and C.
Approach:
i) We are given the selling price, the discount% and the mark-up% of the articles. We will use this information to find the cost price of each article.
x. So, we can find the Marked Price using the above relation
After calculating the selling price and cost price of an article, we can calculate the profit made on the article using the relation Profit = Selling Price – Cost Price
Working out:
Article A :
Article B :
4. Profit = $45 - $30 = $15
Article C :
Total Profit made by the shopkeeper on the articles = $5 +$15 +$10 = $30
Total Cost price of the articles = $40 + $30 + $50 = $120
Answer : B
A merchant bought an item at a cost of c dollars and marked up its price by 40%. However the item did not sell and the merchant was
forced to discount the price of the item by 20%. What was the percentage profit earned by the merchant by selling the item at the
discounted price?
Given:
To Find: % Profit earned by selling at Discounted Price
Approach:
Working out:
Looking at the answer choices, we see that the correct answer is Option B
A shopkeeper buys two printers A and B. Had the shopkeeper paid the full price of both printers, they would have cost the same to him. However, he buys printer A with a down payment of 10 percent of the cost of printer A and printer B with a down payment of 20 percent of the cost of printer B and repays the remaining cost and the individual finance charges of the printers A and B over a period of time. The finance charges for printers A and B are equal to 40 percent of the remainder of the cost of printer A and y percent of the remainder of the cost of Printer B respectively. What should be the value of y so that the cost of buying the two printers is equal for the shopkeeper?
Given:
To Find: Single discount % equivalent to total discount given?
Approach:
Working out:
3. So, we can write
Answer : B
A light bulb manufacturer ships 10 boxes consisting of 100 light bulbs each to a retailer. The manufacturer bills the retailer at a rate of $10 per bulb with a condition that the defective light bulbs may be returned to the manufacturer for full refund. The probability of a light bulb in a box being defective is 20 percent. If the manufacturer makes a profit of 100 percent on each non-defective light bulb and he has to bear a return shipment cost of $2.5 per defective light bulb, which he treats as lost revenue, what is the profit percentage of the manufacture on the whole transaction?
Given:
To Find: Total Profit % of the manufacturer?
Approach:
a. Hence the total net revenue of the manufacturer can be calculated as
Total Net revenue=(Total revenue from non-defective light bulbs)- (Total lost revenue from defective light bulbs)
b. As we know the selling price of each non-defective light bulb and the number of non-defective light bulbs, we can calculate the total
revenue of the manufacturer from the non-defective light bulbs as
Total Revenue from non − defective light bulbs
c. Also, the manufacturer has to recognise the shipment charges of the defective bulbs as lost revenue, it can be calculated as
4. Total Cost Calculation
Selling Price = Cost Price + Profit ..............(1)
Also, we know that,
Working out:
1. Calculating number of Defective and Non-defective light bulbs
a. Total number of bulbs shipped = 1000
b. Total defective light bulbs = 0.2 * 1000 = 200
c. So, total non-defective light bulb = 1000 – 200 = 800
2. Total Net Revenue Calculation
a. Selling price of each non-defective light bulb = $10
b. Total revenue on the non-defective light bulbs = 800 * 10 = $8000
c. Lost revenue for each defective light bulb = $2.5
d. So, lost revenue for total defective bulbs = 2.5 * 200 = $500
e. Hence total net revenue = $(8000 – 500) = $7500
3. Total Cost Calculation
a. Selling price of each non-defective light bulb = $10
b. Profit % on each non-defective light bulb = 100%
c. Cost price of each light bulb = $5
d. Total cost in producing all the light bulbs = 1000* 5 = $5000
4. Profit made = $(7500 – 5000) = $2500
5. Profit % = %
Hence the manufacturer made a profit of 50% on the whole transaction.
Answer : D
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