This EduRev document offers 10 Multiple Choice Questions (MCQs) from the topic Profit, Loss & Discount (Level - 3). These questions are of Level - 3 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 3: Profit, Loss & Discount - 1
Try yourself:The ratios of cost prices and selling prices of products of two shopkeepers A and B are given by (CP)A : (CP)B = 4 : 7, and (SP)A : (SP)B = 7 : 10. Who is earning more profit and by how much?
Explanation
Take (CP)A = 4x and (CP)B = 7x.
(SP)A = 7y and (SP)B = 10y
Calculate (SP)A/(CP)A and (SP)B/(CP)B. and
Hence, the (SP/CP) ratio for A is more than that for B.
Now, compare the ratios. The higher the ratio, the more will be the profit.
To calculate by what percentage A is earning more than B, use × 100.
i.e. = 22.5%
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:By selling eggs at $5 per dozen, a man gained 20%. The cost price of eggs rises by 
. If he sells at the same price as before, find his new gain percent. By what percent should he raise his selling price to gain as much as he did previously?
Explanation
S.P. of eggs = $5 per dozen
Gain% = 20%
C.P. of egg = $(5 x 100)/120 per dozen
After increase, new C.P = $(5 x 100 x 112.5)/(120 x 100) = 4.6875
S.P = $5
Gain% = (5 - 4.6875) × 100/4.6875 = 6.67%
If gain = 20%,
C.P = $ 4.6875
New S.P = $5.625
Percent raise = (5.625 - 5) x 100/5 = 12.5%
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:On a certain day, the cost of an article is 'a' rupees. The next day, it increases by a% and then decreases by b%. The next day again, it increases by a% and then decreases by b%. Now, the cost of the article is 'a' rupees again. If b = 20, what can be the value of 'a'?
Explanation
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:A man purchased some fruits, out of which 20% were damaged. So, he sold the damaged fruits for half of the market price and sold the rest at the market price. Finally, he got 25% profit. What percentage is the market price more than the cost price?
Explanation
Let the cost price of the fruit = Rs. C
Let market price of the fruit = Rs. 2M
So, sales revenue = 0.20M + 0.8 x 2M = 1.8M
Now, 1.8M = 1.25C
Or, M = (1.25C/1.8)
Or, 2M = 1.389C
Thus, the market price is 38.9% or 39% more than the cost price.
Thus, answer option (2) is correct.
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:A horse and a carriage together cost Rs. 8000. If by selling the horse at a profit of 10% and the carriage at a loss of 10%, a total profit of 2.5% is made, what is the cost price of the horse?
Explanation
Let the cost price of horse is x,
Then according to the question:
1.1 x + 0.9(8000 - x) = 1.025 (8000)
0.2x + 7200 = 8200
x = Rs. 5000
Cost price of the horse is Rs. 5000
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:A man bought two horses for Rs. 30,000 each. He sold one of them at a profit of 20% and the other one at a loss of 10%. What was his net profit/loss? By what percentage would the previous gain/loss would have increased/decreased if he had sold the first horse at a profit of 25% and the second at a loss of 21%?
Explanation
Total cost price of both the horses = Rs. 60,000
Ist case:
Profit on first horse = 20% of Rs. 30,000 = Rs. 6000
Loss on second horse = 10% of Rs. 30,000 = Rs. 3000
Net profit = Rs. 6000 - Rs. 3000 = Rs. 3000
In next case,
Profit on first horse = 25% of Rs. 30,000 = Rs. 7500
Loss on second horse = 21% of Rs. 30,000 = Rs. 6300
Net profit = Rs. 7500 - Rs. 6300 = Rs. 1200
Thus, with respect to the previous gain of Rs. 3000, the profit decreased by
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:The cost of 80% concentrated milk is Rs. 16/litre. The cost of 60% concentrated milk is Rs. 13/litre. If a person purchases 80% concentrated milk and mixes water (which is free of cost) in it to make it 60% concentrated milk, then by selling this milk, how much profit can he make?
Explanation
Rs. 16 - 800 ml of pure milk
Rs. 13 - 600 ml of pure milk
80% of milk is mixed with water to make a 60% milk mixture.
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:Mr. Raju invested Rs. 2000 in the business of fast food. It flourished rapidly and brought a 50% profit every year. Instead of taking out the profit, it was added to the capital every year. What was his total investment in the business at the end of 5 years?
Explanation
This is the question of amount compounded annually.
Let the total investment after five years be A.
= Rs. 15,187.50
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:What profit will be made by selling an article at a certain price, if there is a loss of 10% incurred by selling it at 2/3 of that price?
Explanation
Let SP of the article be 3s.
Let CP of the article be c.
SP when a loss of 10% is incurred = (2/3) x 3s = 2s
Actual SP = 3s = 27/20c
Thus, profit percentage
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Question for Practice Questions Level 3: Profit, Loss & Discount - 1
Try yourself:A pharmaceutical company produces 6000 bottles of cough syrup for Rs. 1,32,000. It distributed 20% of the bottles among doctors as samples and sold 2/3 of the remaining bottles at 25% discount. The remaining bottles were sold to shopkeepers at 10% discount on the printed price of the bottle that was 50% more than the cost price. Find the profit or loss.
Explanation
1200 bottles are given for free.
Selling price of the rest of the bottles
Remaining bottles = 4800- 2/3 of 4800 = 4800 - 3200 = 1600
Selling price of the remaining bottles
Total selling price = Rs. 1,26,720
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. If he sells at the same price as before, find his new gain percent. By what percent should he raise his selling price to gain as much as he did previously?
