Profit and Loss – Quantitative Aptitude

What is Profit and Loss?

Profit refers to the financial gain a business makes when its revenues exceed its expenses. It’s the reward for entrepreneurship and effective management. Conversely, Loss occurs when expenses surpass revenues, signaling financial trouble.

The basic formula for profit is: $\text{Profit}=\text{Revenue}-\text{Expenses}$

And for loss: $\text{Loss}=\text{Expenses}-\text{Revenue}$

Concept 

• C.P – Cost Price
• S.P – Selling Price

 

Profit is money earned when a certain commodity is sold at price higher than Cost Price.

Profit(P) = S.P – C.P

A Loss is money lost when a certain commodity is sold at price lower than Cost Price.

Loss(L) = C.P – S.P

Profit Percentage, as well as Loss Percentage, is carried with respect to C.P only.

Formula :

• Profit% = (P/C.P)*100
• Loss% = (L/C.P)*100

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Solved examples

Sum 1. 

Tom buys a cycle for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the cycle for Rs. 5800, his gain in percent is:

a. (32/7)%

b. (60/11)%

c. 10%

d. 12%

 

Solution:

C.P = Rs.(4700+800) = Rs. 5500

S.P = Rs. 5800

Profit = S.P – C.P = 5800 – 5500 = Rs. 300

Profit% = (300/5500)*100 = (60/11)%

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Sum 2.

The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%, then the value of x is:

a. 15

b. 16

c. 18

d. 25

 

Solution:

Let C.P of each article be Rs. 1, therefore C.P of x articles = Rs. x

Therefore S.P of x articles = Rs. 20

Profit = Rs. (20 – x)

Therefore (20 – x)/x * 100 = 25

2000 – 100x = 25x

x = 16

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Sum 3.

The profit triples when the selling price is doubled. What is profit percent?

a. 100

b. 120

c. 33.33

d. 66.66

 

Solution:

Let C.P be Rs.x and S.P be Rs.y

then, 3(y – x) = (2y – x)

y = 2x

Profit = Rs. (y – x) = Rs.(2x – x)= Rs.x

Therefore Profit%=(x/x)*100 = 100

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Sum 4.

Tom buys a bag for Rs. 1400 and sells it at a loss of 15%. What is the selling price of the bag?

a. Rs. 1090

b. Rs. 1160

c. Rs. 1190

d. Rs. 1202 

 

Solution:

S.P = 85% of Rs. 1400 = Rs. (85/100)*1400 = Rs. 1190

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Sum 5.

When a second-hand bike is sold for Rs. 18,700, the owner loses 15%. At what price must that bike be sold in order to gain 15%?

a. Rs. 21,000

b. Rs. 22,500

c. Rs. 25,300

d. Rs. 25,800

 

Solution:

(85/18700) = (115/x)

x = (18700*115)/85 = Rs. 25,300

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Profit & Loss Tricks PDF Download 

50 Profit & Loss Q&A

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