This EduRev document offers 20 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 - 2
Try yourself:A shopkeeper marks his goods at 40% above the cost price and allows a discount of 40% on the marked price.
What is his loss or gain percentage?
Explanation
After offering a discount of 40%:
SP = 0.6 MP = 0.6 (1.4 C.P) = 0.84 CP
Loss = CP - SP
Loss = CP - 0.6 (1.4)
CP = CP - 0.84 CP = 0.16 CP
Therefore, there will be 16% loss.
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:After giving a discount of 40%, the profit becomes half (in amount) with respect to the total profit when there is no discount. What percent discount has to be given if there is no profit and no loss?
Explanation
Assume x as CP and y as MP.
Profit when discount is 40% = (0.6y - x)
Profit when there is no discount = (y - x)
ATQ,
(y - x)/2= (0.6y - x)
(y - x)= 2(0.6y - x)
0.2y = x
y = 5x
So, MP is five times CP.
For no profit and loss,
SP = x
Discount = MP - SP = 4x
% discount to be offered = (4x/5x) × 100 = 80%
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:An unscrupulous vendor professes to sell guavas at cost price but she uses a weight of 960 gm instead of a 1 kg weight. Her gain percent is
Explanation
CP of 1000 gm = Rs. x
CP per gram = CP of 1 gm = Rs. x/1000
SP of 960 gm = Rs. x
SP per gram = SP of 1 gm = Rs. x/960
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:If the cost price of 15 tables is equal to the selling price of 20 tables, then the loss percentage in the transaction is
Explanation
15 C.P. = 20 S.P.
There is 25% loss.
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A man purchased 10 pens and got 2 pens free. He marked the price 20% more than the CP. He did not allow any discount and sold all the 12 pens for this price. Find his profit percentage.
Explanation
Assume CP of each pen as Re. 1.
So, his CP is Rs. 10 (∵ he purchased 10 pens and got 2 pens free).
The SP of each pen is Rs. 1.20 and he has 12 pens now.
So, he will get 12 x (1.20) = Rs. 14.4.
So, percentage profit
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A man sells an article at a gain of 10%. If he had bought it at 10% less and sold it for Rs. 132 less, he would have still gained 10%. The cost price of the article is
Explanation
SP = 1.1 CP
New cost price = 0.9 CP
New selling price = SP - 132
According to the given condition,
0.2 CP - 132 = 0.09 CP
0.11 CP = 132
CP = Rs. 1200
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A person makes a profit of Rs. 800 by selling a product. If the person wants to double his profit, he will need to increase the SP (selling price) of the product by 20%. At what price did the person purchase the product?
Explanation
Let x be the initial SP of the product.
According to the given condition:
1.2x - x = Rs. 800
0.2x = Rs. 800
x = Rs. 4000
The person purchased the product at (4000 - 800) = Rs. 3200.
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A and B invested the same amount of money in shares. After one month, A and B both sold their shares. A got P% loss, whereas B got P% profit. With this amount of money, they again purchased shares and sold them after one month. But this time, A got P% profit, whereas B got P% loss. Finally, who has more money?
Explanation
If A and B invest Rs. 100 each and assuming the profit to be Rs. 10, after one month, A has Rs. 90 and B has Rs. 110. The next month A has Rs. 99 and B also has Rs. 99.
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A milkman buys milk in 10 vessels of equal size. If he sells milk at Rs. 5 per litre, he loses Rs. 200. On selling it at Rs. 6 per litre, he gains Rs. 150 on the whole. Find the quantity of milk in each vessel.
Explanation
Let the quantity of milk in one vessel be x litres.
In 10 vessels, quantity of milk = 10x litres
For Rs. 5 per litre, total cost of milk = 10x × 5 = Rs. 50x
For Rs. 6 per litre, total cost of milk = 10x × 6 = Rs. 60x
From the given information, we can say that
60x - 50x = 350
⇒ 10x = 350
⇒ x = 35 litres
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:The cost of running a printing machine is Rs. 320 per 1000 copies. The cost of setting is Rs. 2000 for the first 5000 copies and after this, the cost of setting is 30 paise per copy. The other cost is 60 paise per copy. About 10000 copies of a magazine are printed, but only 8260 copies are sold at the rate of Rs. 1.75 each. What is the amount earned from advertisement, if a profit of 30% on the cost price is made?
Explanation
Cost of running a printing machine for 10000 copies
Cost of setting of 5000 copies = Rs. 2000
Cost of setting of other 5000 copies
Other cost of 10,000 copies
Total cost price of 10,000 copies = 3200 + (2000 + 1500) + 6000 = Rs. 12,700
Selling price of 8260 copies = 8260 × 1.75 = Rs. 14,455
Net amount earned from advertisement = Total profit - Selling price of 8260 copies
= 16,510 - 14,455 = Rs. 2055
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:Gangaram buys 7000 bananas at Rs. 2 each and agrees to pay an additional sum of Rs. 300 for their delivery. He estimated that 10% of the bananas will be spoiled, so he decides a selling price of Rs. 3 each for the remaining. However, during delivery, 20% of the bananas are spoiled. What should be the percent increase in the selling price in order to obtain the same total profit?
Explanation
10% decrease means there are 6300 bananas.
Total S.P. = 6300 × Rs. 3 = Rs. 18,900
Actual number of bananas left after 20% decrease = 5600
To keep the profit the same, S.P. of each banana should be
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A manufacturer makes a profit of 15% by selling a colour television for Rs. 6900. If the cost of manufacturing increases by 30% and the price paid by the retailer is increased by 20%, then find the profit percent made by the manufacturer.
Explanation
Let the original cost to the manufacturer = Rs. c
So, 6900 = 1.15c
Or, c = 6000
New cost to the manufacturer = Rs. (1.30 × 6000) = Rs. 7800
Price paid by the retailer to the manufacturer = Rs. (1.20 × 6900) = Rs. 8280
Let the new profit percent earned by the manufacturer = Rs. 8280 - Rs. 7800 = Rs. 480
Thus, the manufacturer makes a profit of 6.15%.
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A shopkeeper wants to earn a profit of 27% on his goods. But for marketing purpose, he has to allow a discount of 8.5% to all his customers. By what percent (approximately), above the cost price, must he mark his goods?
Explanation
Let CP = 100
Now, a discount of 8.5% is to be given.
Therefore, 91.5% of marked price should yield 27% profit.
i.e. 91.5% of marked price = Rs. (100 + 0.27 × 100) = Rs. 127
He must mark his goods 38.80% above the cost price.
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:Hemant purchased a phone for Rs. 25,000 in the year 2002. Due to some financial problems, he wanted to sell it in the year 2005. He displayed the selling price as Rs. 22,500. Ram wanted to purchase it and negotiated for a 15% discount on the price. But, Hemant sold him the phone after giving 2 consecutive discounts of 8% and then, 7% on the displayed selling price. The depreciation for the phone is 15% per annum. What is the net discount that Hemant offered Ram?
Explanation
Net discount after consecutive discount of x% and y%, respectively is
Discount offered is 8% and 7%.
Therefore, net discount
= 15 - 0.56 = 14.44%
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:If the marked price of an article is 40% more than the cost price, what percentage of discount can be given so that the vendor makes a profit of 20%?
Explanation
If CP is Rs. 100, then MP is Rs. 140.
To get 20% profit, SP should be Rs. 120.
So, Rs. 20 can be given as discount.
So, discount percentage =
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A TV set having a marked price of Rs. 15,000 is sold by a company to a dealer. The dealer gets 15% discount on it. The dealer then sells this set with 15% profit on the marked price, but also at the same time he gives Rs. 750 rebate on it. Find the profit percentage of the dealer.
Explanation
MP of the TV set = Rs. 15,000
Dealer sold the TV for 17,250 – 750 = Rs. 16,500
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:The percentage of profit made when an article is sold for Rs. 81 is thrice as when it is sold for Rs. 67. The cost price of the article is
Explanation
Let C.P. of the article be Rs. x.
% profit when the article is sold for Rs. 81
In addition, when the article is sold for Rs. 67,
⇒ 81 – x = 201 – 3x
⇒ 2x = 120
⇒ x = 60
Thus, the cost price of the article is Rs. 60
Hence, answer option 2 is correct.
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:Gulnaaz bought some bananas at the rate of 6 per rupee. She bought the same number of bananas at the rate of 3 per rupee and mixed both the types, and sold them at the rate of 10 for Rs. 3. If in this transaction, she had a profit of Rs. 5, how many bananas did she buy?
Explanation
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:A sweet maker made 620 sweets at a cost of 80 paise per sweet. Out of these, 120 sweets got spoiled and he sold rest of the sweets in such a way, that when he sold 400 sweets, he would make a profit of 50% on the total cost of 620 sweets. Find his actual profit percentage on the total outlay.
Explanation
Cost of the sweets = 620 × 0.80 = Rs. 496
Let the selling price per sweet = Rs. x
Selling price of 400 sweets = Rs. 400x
Selling price of 500 sweets = 1.86 × 500 = 930
Profit = 930 - 496 = Rs. 434
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Question for Practice Questions Level 2: Profit, Loss & Discount - 2
Try yourself:Mitchell wants to sell his cycle, costing Rs. 8345. It should be sold at a price which gives a profit of 37%. What will be the marked price when 22% is taken off the selling price?
Explanation
Cost Price = Rs. 8345
Therefore, as the profit is 37% selling price
22% taken off the marked price should give selling price.
So, MP - 0.22 MP = Rs. 11432.65
⇒ 0.78 MP = 11432.65
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