 # Exercise: Problems on Profit and Loss

This is the aptitude questions and answers section on 'Profit and Loss' with solutions and detailed explanation. Questions on profit and loss are based on important definitions and their applications.

Problems on Profit and Loss : Question 1 :
The cost price of three varieties of oranges namely A, B and C is Rs 20/kg, Rs 40/kg and Rs 50/kg. Find the selling price of one kg of orange in which these three varieties of oranges are mixed in the ratio of 2 : 3 : 5 such that there is a net profit of 20%?
 Rs 48 Rs 48.6 Rs 49.2  Correct Rs 49.8
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Explanation:
Cost price of one kg of orange in which the three varieties of oranges are mixed in the ratio 2 : 3 : 5 is equal to S where
S = 0.2 x 20 + 0.3 x 40 + 0.5 × 50
= 4 + 12 + 25
= Rs 41
Selling price per kg of oranges to ensure there is a net profit of 20%
= 1.2 x 41
= Rs 49.2
Problems on Profit and Loss : Question 2 :
A sweet seller sells 3/5th part of sweets at a profit of 10% and remaining at a loss of 5%. If the total profit is Rs 1500, then what is the total cost price of sweets?
 Rs 36,500 Rs 37,000 Rs 37,500  Correct None of these
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Explanation:
Assume A be the cost price.
Therefore,
[{(3/5) x A x (10/100)} – {(2/5) x A x 5/100}] = 1500
Or A = Rs 37,500
Problems on Profit and Loss : Question 3 :
’A’ sold an article to ’B’ at a profit of 20%. ’B’ sold the same article to ’C’ at a loss of 25% and ’C’ sold the same article to ’D’ at a profit of 40%. If ’D’ paid Rs 252 for the article, then find how much did ’A’ pay for it?
 Rs 175 Rs 200  Correct Rs 180 Rs 210
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Explanation:

Let the article costs ‘X’ to A
Cost price of B = 1.2X
Cost price of C = 0.75(1.2X) = 0.9X
Cost price of D = 1.4(0.9X) = 1.26X = 252
Amount paid by A for the article = Rs 200
Problems on Profit and Loss : Question 4 :
If the absolute difference between the selling price of the article when there is 15% loss and 15% gain in selling a article is Rs 450, then what is the cost price of the article?
 Rs 1,200 Rs 1,500  Correct Rs 2,000 Rs 2,200
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Explanation:
If C.P. = Rs 100
Given, 115% of C.P - 85% of C.P = Rs 30
When C.P. = Rs ’X’
115% of C.P - 85% of C.P = Rs 450
Therefore, X = 450/30 x 100
Problems on Profit and Loss : Question 5 :
On selling an article at successive discounts of 20% and 25% a dealer makes a net profit of 20%, Find the net profit per cent if the dealer sells the same article at a discount of 25%.
 50%  Correct 40% 66% 60%
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Explanation:
Let the cost price and market price of the article be ’x’ and ’y’ respectively.
Case 1: Successive discounts of 20% and 25%
Selling price of a the article = (0.8)(0.75)(y) = 0.6y
Therefore, 0.6y = 1.2x or, y = 2x
Case 2: A single discount of 25%
Selling price of the article = 0.75y = 1.5x
Net profit per cent = [(1.5x - x)/x] 100 = 50%