Profit and Loss practice Test
1.
A man buys an article for Rs.27.50 and sells it for Rs.28.60. Find the gain percent.
A 6
B 4
C 7
D 8
Answer: Option B
Explanation:
C.P=Rs 27.50 S.P=Rs 28.60
then Gain=S.P-C.P=28.60-27.50=Rs 1.10
Gain%=(gain*100)/C.P% =(1.10*100)/27.50 %=4%
2.
A kind of tape is selling at a profit of 12% of selling price, equal to 18 cents per yard. What is the selling price of the tape?
A $ 1.50
B $ 1.00
C $ 1.20
D none of these
Answer: Option A
Explanation:
Profit / % profit = selling price.
$.18 / .12 = $1.50 selling price.
3.
Ajith sells a table to Ajay at 10% profit and Ajay sells it to Anoob at 10% loss. At what price did Ajith purchase the table if Anoob paid Rs.2178?
A Rs.2100
B Rs.2150
C Rs.2200
D Rs.2250
Answer: Option C
Explanation:
Let the cost price of table for Ajith be Rs.x and given that, cost price of table for Anoob = Rs.2178
90% of 110% of x = Rs.2178
(90/100) (110/100) x = 2178
x = (2178*100)/9 *11
x = Rs.2200
4.
The interest on Rs.760 for 2yrs is the same as the True discount on Rs960 due 2yrs hence .If the rate of interest is same in both cases,it is
A 12 %
B 14 %
C 13 %
D None of these
Answer: Option B
Explanation:
Principal=Rs.760
Time=2yrs
amount=Rs960
P*T*R/100=(Amount*R*T)/(100+R*T)
=>(750*2*r)/100=(960*r*2)/(100+2r)
=>150r=2100
rate=14%
5.
A manufacturing company employs 10 machines, the aggregate output of which for a year is Rs 42000, and pays 10% of the profit to its shareholders. The manufacturing expenses for a year are Rs.1800 per machine and the establishment charges Rs 9000 per annum. What per cent of the original profit will it pay to its shareholders, if one machines breaks down and is idle for one year?
A 7 3/10 %
B 3 %
C 8 2/5 %
D 9 1/3 %
Answer: Option C
Explanation:
When all 10 machines are working, profit =42000-[9000-(1800*10)] = Rs.15000.
If one breaks down, then the aggregate output = 0.9*42000 = Rs.37800,
Manufacturing expenses = Rs 16200,
Establishment charges = Rs.9000 Therefore Total expenses = Rs. 25200,
Profit = Rs.37800- Rs.25200 = Rs. 12600
The profit paid to shareholder is 10% of Rs 12600 = 1260
Required percentage = 1260*100/15000 = 8 2/5 %
6.
X and Y starts a business with the investment of Rs. 8000 and Rs. 5000 respectively. Y is an active partner and therefore he gets 10% of the profit separately for supervision of the trade. If total profit of the business is Rs. 3240, what will be the profit of Y?
A 324
B 1215
C 1445
D 1944
Answer: Option C
Explanation:
Separate Profit of ‘Y’ for supervision of the business = Rs. 324/- Remaining profit = Rs. 2916.
‘Y’ Share in the profit = Rs. 324 + Rs. 1121 = Rs. 1445.
7.
The total expense of a boarding house are partly fixed and partly variable with the number of boarders. The charge is Rs.70 per head when there are 25 boarders and Rs.60 when there are 50 boarders. Find the charge per head when there are 100 boarders?
A 65
B 55
C 50
D 45
Answer: Option B
Explanation:
Let a = fixed cost and k = variable cost and n = number of boarders
total cost when 25 boarders c = 25*70 = 1750 i.e. 1750 = a + 25k
total cost when 50 boarders c = 50*60 = 3000 i.e. 3000 = a + 50k
solving above 2 eqns, 3000-1750 = 25k i.e. 1250 = 25k i.e. k = 50
therefore, substituting this value of k in either of above 2 eqns we get
a = 500 (a = 3000-50*50 = 500 or a = 1750 – 25*50 = 500)
so total cost when 100 boarders = c = a + 100k = 500 + 100*50 = 5500
so cost per head = 5500/100 = 55
8.
When a plot is sold for Rs. 18,700, the owner loses 15%. At what price must that plot be sold in order to gain 15%?
A Rs. 21,000
B Rs. 22,500
C Rs. 25,300
D Rs. 25,800
E None of these
Answer: Option C
Explanation:
The owner looses 15% by selling the plot at Rs. 18,700
Therefore he recovers only 85% cost at Rs. 18,700
⇒ 0.85C = Rs. 18,700
He needs a profit of 15%, therefore he should sell at 1.15C
If ⇒ 0.85C = Rs. 18,700 1.15C
= ? 1.15C = 18,700/0.85 X1.15=Rs.25,300
9.
The price of commodity X increases by 40 paise every year, while the price of commodity Y increases by 15 paise every year. If in 2001, the price of commodity Xwas Rs. 4.20 and that of Y was Rs. 6.30, in which year commodity X will cost 40 paise more than the commodity Y ?
A 2010
B 2011
C 2012
D 2013
Answer: Option B
Explanation:
Suppose commodity X will cost 40 paise more than Y after z years.
Then, (4.20 + 0.40z) – (6.30 + 0.15z) = 0.40
=> 0.25z = 0.40 + 2.10
=> z =2.50/0.25= 250/25 = 10.
=> X will cost 40 paise more than Y 10 years after 2001 i.e., 2011.
10.
The cost price of two types of tea are Rs. 180 per kg and Rs. 200 per kg respectively. On mixing them in the ratio 5:3, the mixture is sold at Rs. 210 per kg . In the whole transaction, the gain percent is
A 10%
B 11%
C 12%
D 13%
Answer: Option C
Explanation:
Let 5kg of first kind of tea be mixed with 3 kg of second kind
c.p of 8 kg of tea = Rs. ( 180*5 + 200*3 ) = Rs. 1500
s.p of 8 kg of tea = Rs. (210 * 8) = Rs.1680
Gain = Rs. ( 1680 – 1500 ) = Rs. 180
Gain% = ( 180/1500*100 )% = 12%