# CRE 1 - Profit & Loss | Arithmetic - Profit & Loss

Join our Telegram Group for CAT/MBA Preparation.

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

By selling a TV Trolley for Rs 1800 a carpenter loses 10%. Find his cost price

- (a)
Rs. 1600

- (b)
Rs. 1608

- (c)
Rs. 2100

- (d)
None of these

Answer: Option D

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

SP = 1800 = 90% of CP = 90/100 × CP.

⇒ CP = 1800 × 100/90 = Rs. 2000.

Hence, option (d).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

SP of an article is Rs. 80 and loss is 20%. Find the cost price

- (a)
Rs. 48

- (b)
Rs. 12

- (c)
Rs. 100

- (d)
None of these

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

CP = 80 × 100/80 = 100 Rs.

Hence, option (c).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

By selling a watch for Rs 480 a man gains 20%. Find what would have been his profit or loss percent of he had sold it for Rs. 320

- (a)
Profit 10%

- (b)
Loss 10%

- (c)
Loss 20%

- (d)
None of these

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Selling Price of a watch = Rs. 480

Profit = 20%

Hence, SP = CP(1 + P/100)

⇒ 480 = CP(1 + 20/100)

⇒ Cost Price of the watch = Rs. 400

Now, If the selling price of the watch is Rs. 320

Then, Loss % = (400 - 320) × 100/400

⇒ Loss % = 20%

Hence, option (c).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

By selling oranges for 10 a Re. a man loses 10%. How many for a Re. he should sell the oranges to gain 80%?

- (a)
9

- (b)
7

- (c)
12

- (d)
None of these

Answer: Option D

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Selling price of 1 orange = Rs. 1/10

Loss % = 10%

Now, SP = CP(1 - L/100)

⇒ 1/10 = CP(1 - 10/100)

Therefore, Cost Price of 1 orange = Rs. 1/9

Now, if he had to gain 80% then,

SP = 1/9(1 + 80/100)

⇒ SP = 1/9 × 18/10

⇒ SP = Rs. 1/5

Hence, he should sell 5 oranges for a Rs. to gain 80%.

Hence, option (d).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A fruit seller buys some mangoes at a rate of 20 for Rs. 3 and sells them at rate of 25 for Rs 4. Find his gain or loss%

- (a)
6.66% profit

- (b)
1% loss

- (c)
1.23% loss

- (d)
None of these

Answer: Option A

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let number of mangoes = 100

CP of 20 = 3 Rs.

∴ CP of 100 = 15 Rs

SP of 25 = 4 Rs

∴ SP of 100 = 16 Rs

∴ Profit =1/15 × 100 = 6.66%

Hence, option (a).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

Two articles are sold at Rs. 1000 each. One at a profit of 30%, while other at a loss of 30%. Find real profit or loss%.

- (a)
9% gain

- (b)
9% loss

- (c)
No profit no loss

- (d)
None of these

Answer: Option B

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Here selling price of both articles is same i.e., Rs. 1000.

Total Selling Price = Rs. 2000.

One article is sold at 30% profit, hence its cost price = $\frac{1000}{1.3}$

Second article is sold at 30% loss, hence its cost price = $\frac{1000}{0.7}$

Total Cost Price = $\frac{1000}{1.3}$ + $\frac{1000}{0.7}$ = $\frac{2000}{0.91}$

∴ Required profit/loss % = $\left[\frac{\mathrm{SP}}{\mathrm{CP}}-1\right]\times 100\%$

= $\left[\frac{2000}{2000/0.91}-1\right]\times 100\%$

= [0.91 - 1] × 100%

= -9%

⇒ A loss of 9%.

**Alternately**,

If two articles are sold at same price such that one is sold at P% profit and another is sold at P% loss, overall there will be a loss of $\frac{{\mathrm{P}}^{2}}{100}\%$

Here, overall loss = $\frac{{30}^{2}}{100}\%$ = 9%

Hence, option (b).

**Note**: You may be tempted to give answer as no profit no loss. That would have been true had the **cost price** of two articles were same. Here **selling price** of the two articles is same.

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A man bought 2 oranges for Rs. 5 and sells at a rate of 3 for Rs. 7. His real loss % is

- (a)
$6\frac{2}{3}\%$

- (b)
$7\frac{1}{7}\%$

- (c)
$7\frac{2}{7}\%$

- (d)
None of these

Answer: Option A

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let no. of oranges = 6

CP of 2 = 5

∴ CP of 6 = 15

SP of 3 = 7

SP of 6 = 14

∴ Loss% = 1/15 × 100 = $6\frac{2}{3}\%$

Hence, option (a).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

If selling price of 8 articles is equal to cost price of 10 articles. Find real profit or loss

- (a)
20% profit

- (b)
25% profit

- (c)
30% profit

- (d)
None of these

Answer: Option B

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

SP of 8 = CP of 10 = CP of 8 + CP of 2

∴ Profit% =2/8 × 100 = 25%

Hence, option (b).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

If selling price of 10 articles is equal to cost price of 8 articles. Find real profit or loss%

- (a)
10% loss

- (b)
20% loss

- (c)
30% loss

- (d)
None of these

Answer: Option B

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

SP of 10 = CP of 8 = CP of 10 – CP of 2

∴ loss % = 2/10 × 100 = 20%

Hence, option (b).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

By selling 45m of cloth a merchant gains the cost price of 15m. Find his real profit or loss%

- (a)
20% profit

- (b)
40% profit

- (c)
33.33% profit

- (d)
None of these

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

SP of 45m - CP of 45m = CP of 15m

⇒ SP of 45m = CP of 45m + CP of 15m

⇒ Gain % = 15 × 100/45

Therefore, profit % = 33.33%

Hence, option C is the correct answer.

Hence, option (c).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

By selling 33 meters of a cloth, a merchant gains the selling price of 11 meters. Find his real profit or loss%

- (a)
20% profit

- (b)
50% profit

- (c)
60% profit

- (d)
None of these

Answer: Option B

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Selling Price = Cost Price + Profit

SP of 33 = CP of 33 + SP of 11

SP of 22 = CP of 33

∴ Profit% = 11/22 × 100 = 50%

Hence, option B is the correct answer.

Hence, option (b).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A man sold a watch for Rs 75 and got a profit percentage equals to cost price. Find Cost Price of the watch.

- (a)
Rs. 50

- (b)
Rs. 60

- (c)
Rs. 90

- (d)
None of these

Answer: Option A

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let the cost price be Rs. x

Hence, P% = x%

SP = CP(1 + P/100)

⇒ 75 = x(1 + x/100)

⇒ x = 50

Hence, cost price of the watch is Rs. 50

Hence, option (a).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A man bought goods for Rs. 800 and sold half at a gain of 5%. Find at what % gain, he must sell the remaining so as to gain 20% on the whole?

- (a)
25%

- (b)
30%

- (c)
40%

- (d)
None of these

Answer: Option D

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

SP of 1st half = 400 × 105/100 = Rs. 420

SP of whole = 800 × 120/100 = Rs. 960

Therefore, Second half he should sell at = (540 – 400) × 100/400 = 140 × 100/400 = 35% profit.

Hence, option (d).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A boy buys eggs at 18 for Rs. 16 and sells them at 22 for Rs. 20. Find his gain or loss percent?

- (a)
$7\frac{1}{11}\%$

- (b)
$2\frac{3}{11}\%$

- (c)
$2\frac{5}{11}\%$

- (d)
$7\frac{2}{11}\%$

Answer: Option B

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

CP : 18 eggs for Rs. 16

⇒ 1 egg for Rs. 16/18

SP : 22 egg for Rs. 20

⇒ 1 egg for Rs. 20/22

= $\left[\left(\frac{20}{22}-\frac{16}{18}\right)/\left(\raisebox{1ex}{$16$}\!\left/ \!\raisebox{-1ex}{$18$}\right.\right)\right]\times 100$

= $\left[\left(\frac{180-176}{198}\right)/\left(\raisebox{1ex}{$16$}\!\left/ \!\raisebox{-1ex}{$18$}\right.\right)\right]\times 100$

= $\frac{4}{198}\times \frac{18}{16}\times 100$ = $\frac{1}{44}\times 100$ = $2\frac{3}{11}$

Hence, option (b).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A man buys milk at Rs. 2.40/litre. He adds one third water to it and sells the mixture at RS. 2.88/litre. Find his gain%?

- (a)
50%

- (b)
40%

- (c)
35%

- (d)
60%

Answer: Option D

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Recognize, for every 3 litre of milk purchased, 4 litres of mixture is sold.

CP for 3 litres milk = 3 × Rs. 2.40 = Rs. 7.20

SP for 4 litres mixture = 4 × Rs. 2.88 = Rs. 11.52

∴ Profit% = (11.52 - 7.20)/7.20 = 0.6 = 60%

Hence, option (d).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A buys an article and sells it to B at a profit of 10%, B sells it to C gaining 20%. If C gives Rs. 924, what did A give?

- (a)
Rs. 725

- (b)
Rs. 700

- (c)
Rs. 650

- (d)
Rs. 750

Answer: Option B

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let cost price of A be (CP)_{A}, of B be (CP)_{B} and that of C be (CP)_{C}.

Similarly, selling prices be designed as (SP)_{A} ; (SP)_{B} and (SP)_{C}

If (CP)_{A} = x

Then, (CP)_{B} = (SP)_{A} = 1.1 x

(CP)_{C} = (SP)_{B} = (1.2) (1.1) x = Rs. 924 ⇒ x = Rs. 700

Hence, option (b).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A shopkeeper sold an article at a gain of 25%. If he had paid Rs. 1.75 less for it and sold it at the same price he would have made a gain of 60%. Find the cost price?

- (a)
Rs. 17.50

- (b)
Rs. 9.25

- (c)
Rs. 12.50

- (d)
Rs. 8

Answer: Option D

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let CP = Rs. x and SP = Rs. 1.25 x

But it is given that, $\frac{1.25x-(x-1.75)}{x-1.75}$ = 0.6

⇒ 0.25 x + 1.75 = 0.6 x – 1.05

⇒ x = Rs. 8

Hence, option (d).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

I bought two buffaloes for Rs. 1200 and sold one to lose 5% and the other to gain 7% and on the whole I neither lost nor gained. What did each cost?

- (a)
Rs. 400, Rs. 800

- (b)
Rs. 600, Rs. 600

- (c)
Rs. 700, Rs. 500

- (d)
Rs. 900, Rs. 300

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let the CP’s of buffaloes be Rs. x and (1200 – x).

Then, it is given that 0.95 x + 1.07 (1200 – x) = 1200

⇒ 0.12x = 84

⇒ x = 700

∴ Cost of other buffalo = Rs. 500

Hence, option (c).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A man buys apples at a certain price per dozen and sells them at eight times per hundred. What does he Gain or Loss %?

- (a)
4% loss

- (b)
4% gain

- (c)
$6\frac{1}{4}$% loss

- (d)
$6\frac{1}{4}$% gain

Answer: Option A

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Easiest way to solve such problems is to assume some simple values

Let 120 apples be purchased at Rs. 12/dozen

Thus, total cost of purchase = Rs. 12 × 10 dozen = Rs. 120

Now, SP = Rs. 96 apples/100

⇒ 96/100 × 120 = SP for 120 apples = Rs. 115.20

∴ Loss% = 4.8/120 × 100 = 4%

Hence, option (a).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

Arun sold an article to Babu at a profit of 10%. Babu sold it to Chander for Rs. 60.50 and also gained 10%. What did Arun pay for it?

- (a)
Rs. 45.45

- (b)
Rs. 55.00

- (c)
Rs. 50.0

- (d)
Rs. 56.50

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let the (CP)_{Arun} = x

Then, (SP)_{Arun} = (CP)_{Babu }= 1.1 x

(SP)_{Babu }= (CP)_{Chander} = Rs. 60.5 = (1.1) (1.1)x

⇒ x = 60.5/1.1^{2} = Rs. 50

Hence, option (c).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

The manufacturer of a machine sells it to a wholesaler at a profit of 20%. The wholesaler, in turn, sells it to a retailer at a gain of 10%. The retailer sells it to a customer for Rs. 1452 at a gain of 10%. The cost price of the machine for the manufacturer is:

- (a)
Rs. 870

- (b)
Rs. 1000

- (c)
Rs. 1050

- (d)
Rs. 1200

Answer: Option B

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let the manufacturers cost price be m. Then,

(SP)_{manufacturer }= (CP)_{wholesaler} = 1.2 m

(SP)_{wholesaler} = (CP)_{retailer} = (1.1) (1.2) m

(CP)_{retailer} = (CP)_{customer} = (1.1) (1.1) (1.2) m = Rs. 1452

⇒ 1.452m = 1452

m = 1452/1.452 = 1000

Hence, option (b).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A manufacturer sells goods to a dealer at 10% profit and the dealer to his customer at 12.5% profit. How much does a customer pay above the original cost of goods purchased by him for Rs. 990?

- (a)
Rs. 150

- (b)
Rs. 175

- (c)
Rs. 190

- (d)
Rs. 210

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let Manufacturer’s price be M. Then,

(SP)_{manufacturer} = (CP)_{dealer} = 1.1 m

(SP)_{dealer} = (CP)_{customer} = (1.125) (1.1) m

i.e. (1.125) (1.1) m = 990 ⇒ m = 800

∴ customer paid Rs. (990 – 800) = Rs. 190 above the manufacturer’s prize.

Hence, option (c).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

What percent profit is made by selling an article at a certain price if by selling it at half that price there would be a loss at 12.5%?

- (a)
50%

- (b)
37.5%

- (c)
60%

- (d)
75%

Answer: Option D

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Let CP = Rs. x and SP = y

Then,

If SP_{new} = 0.5 y, Loss% = (x - 0.5y)/x = 0.125 or x – 0.5y = 0.125x

or 0.875 x = 0.5 y ⇒ y = 0.875/0.5 x = 1.75 x

But when, CP = x, SP = y, profit % = (y - x)/x × 100

= $\frac{1.75x-x}{x}\times 100$ = $\frac{0.75x}{x}\times 100$ = 75%

Hence, option (d).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

Oranges are bought at 11 for a rupee and an equal number more at 9 for a rupee. If they are sold at 10 for a rupee what is the gain or loss percent?

- (a)
no loss, no gain

- (b)
10% loss

- (c)
1% loss

- (d)
5% gain

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

If x be the number of oranges at each of the prices, then,

Total purchase = x/11 + x/9 = (9x + 11x)/99 = 20x/99

Sales revenue = 2x/10 = x/5

% gain = $\frac{{\displaystyle \frac{x}{5}}-{\displaystyle \frac{20x}{99}}}{{\displaystyle \frac{20x}{99}}}\times 100$ = $\frac{{\displaystyle \frac{99x-100x}{495}}}{{\displaystyle \frac{20x}{99}}}\times 100$ = $\frac{-x}{495}\times \frac{99}{20x}\times 100$ = -1 or 1% loss.

Hence, option (c).

Workspace:

**CRE 1 - Profit & Loss | Arithmetic - Profit & Loss**

A person sold 480 meters of cloth for Rs. 225 gaining thereby the cost of 72 meters. Find his gain percent?

- (a)
20%

- (b)
18%

- (c)
15%

- (d)
12%

Answer: Option C

Join our Telegram Group for CAT/MBA Preparation.

**Explanation** :

Compute selling price of 1 m cloth = Rs. 225/480 = Rs. 15/32

Let CP of 1 m cloth be x. Hence, CP of 480 m = 480 x

Then gain = 72x

gain % = (72x)/(480x) × 100 = 15%

Hence, option (c).

Workspace:

## Feedback

Help us build a Free and Comprehensive Preparation portal for various competitive exams by providing us your valuable feedback about Apti4All and how it can be improved.