Profit and Loss carry high importance in management entrance exams like CAT, XAT, NMAT. It is an integral part of the Arithmetic chapter, Data Interpretation and Logical Reasoning in these entrance exams. Prior understanding of ratios and percentages is a must to study this chapter. Students can expect at least 3-5 questions from Profit and Loss in every entrance exam.
Below you will find Profit and Loss questions that came in previous years’ CAT papers.
1. Answer:
D = Price of Desktop and L = Price of Laptop
0.2 D – 0.1 L = 2 % of 50000
0.2 D – 0.1 L = 1000
D – L = 10000
D + L = 50000
Solving D = 20000
2. Anil buys 12 toys and labels each with the same selling price. He sells 8 toys initially at 20% discount on the labeled price. Then he sells the remaining 4 toys at an additional 25% discount on the discounted price. Thus, he gets a total of Rs 2112, and makes a 10% profit. With no discounts, his percentage of profit would have been
A) 60 B) 54 C) 55 D) 50 [CAT 2020]
2. Answer:
Let’s take Selling Price = P
= (8 × 0.8 P) + 4 × {0.8P – 1/4 (0.8) P}
= {(8 × 0.8 P) + 4 × (0.6P)}
Total Selling Price = 8.8 P
CP = 8.8P/1.1 = 8P (Since he makes 10% profit)
SP = 12P
So, Profit from 8P to 12P = 4P/8P = 50%
3. On selling a pen at 5% loss and a book at 15% gain, Karim gains Rs. 7. If he sells the pen at 5% gain and the book at 10% gain, he gains Rs. 13. What is the cost price of the book in Rupees?
A) 95 B) 100 C) 80 D) 85 [CAT 2019]
3. Answer:
let the CP of pen = p and that of book = b
So as per question 0.15 b – 0.05 p = 7
Or 15b – 5p = 700 ————-1)
Similarly 10b + 5p = 1300 —–2)
Adding both equations 25b = 2000
Or b = 2000/25 = 80
4. A wholesaler bought walnuts and peanuts, the price of walnut per kg being thrice that of peanut per kg. He then sold 8 kg of peanuts at a profit of 10% and 16 kg of walnuts at a profit of 20% to a shopkeeper. However, the shopkeeper lost 5 kg of walnuts and 3 kg of peanuts in transit. He then mixed the remaining nuts and sold the mixture at Rs. 166 per kg, thus making an overall profit of 25%. At what price, in Rs. per kg, did the wholesaler buy the walnuts?
A) 98 B) 96 C) 84 D) 86 [CAT 2019]
4. Answer:
Let the cost price of peanuts for the wholesaler be x per kg.
Cost price of walnuts for the wholesaler is 3x per kg.
The wholesaler sold 8 kg of peanuts at 10% profit and 16 kg of walnuts at 20% profit to a shopkeeper.
Total cost price to the shopkeeper = (8)(x)(1.1) + 16(3x)(1.2) = 66.4x The shopkeeper lost 5 kg walnuts and 3 kg peanuts.
The shopkeeper sold the mixture of 11 kg walnuts and 5 kg peanuts. His total selling price=166(16) = 2656
His total cost price = 2656(100/125) = 2124.8
66.4x = 2124.8
x = 32
Price at which the wholesaler bought walnuts = 3x = 96/- per kg
There are some set concepts or types on which questions are framed. A thorough understanding of each type of problem would help in tackling the exam. Questions based on Profit and Loss concepts in CAT, XAT, SNAP, NMAT, etc. are of the following type:
Profit Loss questions forms the important part of Arithmetic which has good contribution in the Quants section of CAT, XAT, SNAP, NMAT and other various management entrance exams. We will divide the preparation of this topic into three levels following which can help the aspirants to score exceptionally well in the management entrance exams.
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