This EduRev document offers 10 Multiple Choice Questions (MCQs) from the topic Profit, Loss & Discount (Level - 2). These questions are of Level - 2 difficulty and will assist you in the preparation of CAT & other MBA exams. You can practice/attempt these CAT Multiple Choice Questions (MCQs) and check the explanations for a better understanding of the topic.
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:A shopkeeper purchased a box containing 50 pens for Rs. 500. He sold some of these pens at a profit of 30%. On the remaining pens, he incurred a loss of 10%. If his overall profit on the entire box was 10%, then how many of the pens did he sell at profit?
Explanation
CP of 50 pens = Rs. 500
Overall profit = 10%
Let the number of pens sold at profit be x.
Then, the number of pens sold at loss = 50 - x
Profit on selling x pens = 30%
CP of x pens = Rs. 10x
= 500 - 10x - 50 + x
= 450 - 9x … (2)
Now, (1) + (2) = 550 (Total SP)
550 = 450 - 9x + 13x
100 = 4x
x = 25
Number of pens sold at profit = 25
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:There are two types of milk, type A and type B. For type A, the selling price is 50% more than the cost price; and for type B, it is 20% more. If these two types are mixed in the ratio 3 : 2 and sold at the marked price, what is the profit percentage?
Explanation
We do not know the cost prices of the two types of milk, we only know that type A milk will give 50% profit and type B milk will give 20% profit. But the profits will be taken on cost prices; we cannot find the overall profit percentages without knowing the cost prices or the ratio of the cost prices of milk. So, we cannot answer this question, even if we know the ratio of mixing.
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:A dishonest milkman mixes 20 litres of water with 80 litres of milk. After selling one-fourth of this mixture, he adds water to replenish the quantity that he had sold. What is the current proportion of water to milk?
Explanation
100 litres of mixture has 80 litres of milk and 20 litres of water.
When 25 litres of mixture is taken out, it contains 20 litres of milk and 5 litres of water.
So, milk left = 60 litres and water left = 15 litres.
If 25 litres of water is added, then ratio of water to milk = 40 : 60 = 2 : 3
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:A tradesman marks an article at a price which would give him a profit of 20% on the cost price. To the favoured customers, he makes a deduction of 5% from the marked price. What actual profit does he receive from the sale of an article to a favoured customer for which the latter pays him $28.50?
Explanation
Let the CP of the article be $x.
MP = x + 20% of x = $1.2x
When a discount is given on this MP,
SP of the article
But 1.14x = 28.50
So, x = 25
CP of the article = $25
SP = $28.50
Profit = $3.50
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:Rahul purchased a scooter at 13/15th of its selling price and sold it at 12% more than its selling price. What is his gain percent?
Explanation
Let SP be Rs. x.
Then, CP = Rs. (13/15)x
Receipt = 112% of Rs. x
= Rs. (28/25)x
Gain = Rs. [(28x/25) – (13x/15)]
= Rs. 19x/75
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:There are two shops, A and B. Shop A gives successive discounts of 60% and 40%, whereas shop B gives successive discounts of 30% and 70%. If the selling price of an article is the same in both the shops, then what is the ratio of marked prices of the article in the two shops?
Explanation
Let the MPs be x and y in shops A and B, respectively.
SPs in shops A and B are 0.24x and 0.21y, respectively.
Then, according to question:
0.24x = 0.21y
⇒ x : y = 7 : 8
Hence, ratio of marked prices of the article in the two shops A and B = 7 : 8.
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:Umesh purchased 360 eggs at the rate of 78 paise each. On this, he paid Rs. 14 as octroi, Rs. 13 as transport and Rs. 5 as additional charges. He kept 7 eggs for himself. At what rate should he sell each of the remaining eggs to get a total profit of Rs. 70?
Explanation
Total cost = 360 × 0.78 + 14 + 13 + 5 = Rs. 312.80
He needs to sell 353 eggs for 312.8 + 70 = Rs. 382.8.
Thus, price of one egg = Rs. 1.08
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:A sold a watch to B at a gain of 5% and B sold it to C at a gain of 4%. If C paid Rs. 1,092 for it, the price paid by A is
Explanation
Given: C paid Rs. 1,092.
Let the sum paid by A be Rs. X.
Then, amount paid by B to A = Rs. 1.05X
Amount paid by C to B = 1.04 × 1.05X = Rs. 1,092
X = Rs. 1,000
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:Vijay bought some pens for Rs. 540. He lost 2 pens on his way back to the shop. Then, he sold the rest of the pens at Rs. 6 more (per pen) than what he paid for them. On the whole transaction, Vijay gained 10% on his outlay. How many pens did Vijay buy?
Explanation
Let the total number of pens bought be x.
Total CP = Rs. 540
On simplifying, we get
6x2 - 66x - 1080 = 0
(x - 20)(x + 9) = 0
x = 20 or x = -9
Therefore, 20 pens were bought.
Question for Practice Questions Level 2: Profit, Loss & Discount - 1
Try yourself:Gopal, a cunning milkman, buys milk from Frontier Dairy Junction and sells it to gullible housewives. He buys milk at Rs. 35 per litre and adds 250 ml of pure water to a litre of the thick creamy milk. He sells the mixture so formed at Rs. 45 per litre. What is his approximate profit percentage? It is to be assumed that it costs him next to nothing to mix the milk in water.
Explanation
Cost price for 1250 ml of solution = Cost of 1 litre of pure milk = Rs. 35
Sale price of 1250 ml of solution = Rs. (45/1000) × 1250 = Rs. 56.25
Thus, profit percent = (56.25 - 35)/35 × 100 = 60.7 = 60 (Approx)
Hence, answer option 3 is correct.