Episode 8 — Aptitude and Reasoning / 8.2 — Profit and Loss

8.2 Practice MCQs -- Profit and Loss

Instructions: Choose the correct option for each question. Answer key with explanations is provided at the end.


Section A: Basic (Questions 1-15)


Q1. A man buys an article for Rs. 400 and sells it at 15% profit. The selling price is:

(a) Rs. 440 (b) Rs. 450 (c) Rs. 460 (d) Rs. 470


Q2. An article was sold for Rs. 630 at a loss of 10%. The cost price of the article is:

(a) Rs. 693 (b) Rs. 700 (c) Rs. 567 (d) Rs. 600


Q3. A trader buys goods for Rs. 1,500 and sells them for Rs. 1,200. The loss percentage is:

(a) 25% (b) 30% (c) 20% (d) 15%


Q4. If CP = Rs. 250 and profit = Rs. 50, then profit percentage is:

(a) 25% (b) 15% (c) 20% (d) 10%


Q5. The marked price of a shirt is Rs. 800. After a 15% discount, the selling price is:

(a) Rs. 680 (b) Rs. 720 (c) Rs. 640 (d) Rs. 660


Q6. A shopkeeper buys a pen for Rs. 60 and sells it for Rs. 72. The profit percentage is:

(a) 12% (b) 15% (c) 18% (d) 20%


Q7. If SP = Rs. 780 and profit% = 30%, then CP is:

(a) Rs. 546 (b) Rs. 600 (c) Rs. 650 (d) Rs. 585


Q8. An article is purchased for Rs. 950 and sold for Rs. 855. The loss percentage is:

(a) 8% (b) 9% (c) 10% (d) 11%


Q9. A dealer marks his goods 25% above cost price. His marked price if CP is Rs. 480 is:

(a) Rs. 576 (b) Rs. 600 (c) Rs. 540 (d) Rs. 620


Q10. A toy bought for Rs. 200 is sold at 5% loss. The selling price is:

(a) Rs. 195 (b) Rs. 180 (c) Rs. 190 (d) Rs. 185


Q11. If an article is sold for Rs. 120, making a profit of Rs. 20, the profit percentage is:

(a) 16.67% (b) 20% (c) 25% (d) 15%


Q12. A person buys a cycle for Rs. 3,200 and spends Rs. 300 on its repair. If he sells it for Rs. 4,200, his profit percentage is:

(a) 18% (b) 20% (c) 22% (d) 25%


Q13. The cost price of 20 pens is equal to the selling price of 16 pens. The profit percentage is:

(a) 20% (b) 25% (c) 30% (d) 16%


Q14. A vendor buys mangoes at 5 for Rs. 20 and sells at 4 for Rs. 20. His profit percentage is:

(a) 20% (b) 25% (c) 30% (d) 15%


Q15. A shopkeeper offers a discount of 10% on the marked price of Rs. 500. If he still makes a 20% profit, the cost price is approximately:

(a) Rs. 350 (b) Rs. 375 (c) Rs. 400 (d) Rs. 360


Section B: Medium (Questions 16-30)


Q16. A dealer buys goods for Rs. 1,000, marks them 40% above CP, and gives a 15% discount. His profit percentage is:

(a) 17% (b) 19% (c) 21% (d) 25%


Q17. Successive discounts of 10% and 20% are equivalent to a single discount of:

(a) 30% (b) 28% (c) 32% (d) 25%


Q18. Two articles are sold for Rs. 500 each. On one there is a 25% profit and on the other a 25% loss. The overall result is:

(a) 6.25% profit (b) 6.25% loss (c) No profit no loss (d) 5% loss


Q19. A shopkeeper sells at cost price but uses 900g weight instead of 1 kg. His profit percentage is:

(a) 10% (b) 9% (c) 11.11% (d) 12.5%


Q20. A shop offers "Buy 4 Get 1 Free." The effective discount percentage is:

(a) 25% (b) 20% (c) 15% (d) 10%


Q21. An article is sold at 20% profit. If the CP and SP are each increased by Rs. 100, the profit percentage:

(a) Increases (b) Decreases (c) Remains the same (d) Cannot be determined


Q22. A man sold an article at 5% profit. Had he sold it for Rs. 150 more, his profit would have been 20%. The cost price is:

(a) Rs. 800 (b) Rs. 900 (c) Rs. 1,000 (d) Rs. 1,100


Q23. If a shopkeeper marks his goods 30% above CP and then gives a 20% discount, his net profit/loss percentage is:

(a) 4% profit (b) 10% profit (c) 4% loss (d) 6% profit


Q24. A man buys 12 oranges for Rs. 60 and sells 8 oranges for Rs. 56. His profit percentage is:

(a) 25% (b) 30% (c) 35% (d) 40%


Q25. Successive discounts of 20%, 10%, and 5% on Rs. 1,000 give a final price of:

(a) Rs. 684 (b) Rs. 700 (c) Rs. 650 (d) Rs. 720


Q26. A dealer sells an article at 10% loss. If he had sold it for Rs. 90 more, he would have gained 5%. The cost price is:

(a) Rs. 500 (b) Rs. 600 (c) Rs. 700 (d) Rs. 800


Q27. A trader marks his goods 50% above CP. What maximum discount percentage can he offer so that he still makes at least 20% profit?

(a) 15% (b) 20% (c) 25% (d) 30%


Q28. If the profit on selling an article is 1/3 of the selling price, the profit percentage is:

(a) 25% (b) 33.33% (c) 40% (d) 50%


Q29. A, B, and C enter a partnership. A invests Rs. 10,000 for 6 months, B invests Rs. 20,000 for 4 months, and C invests Rs. 15,000 for 8 months. In what ratio will they share the profit?

(a) 1 : 2 : 3 (b) 3 : 4 : 6 (c) 2 : 3 : 4 (d) 6 : 8 : 12


Q30. A man bought an article and sold it at a gain of 10%. If he had bought it for 20% less and sold it for Rs. 20 more, he would have gained 40%. The original cost price is:

(a) Rs. 500 (b) Rs. 550 (c) Rs. 600 (d) Rs. 1,000


Section C: Advanced (Questions 31-42)


Q31. A dishonest dealer professes to sell his goods at cost price but uses a weight of 960g for 1 kg. His gain percentage is:

(a) 4% (b) 4.17% (c) 5% (d) 3.85%


Q32. A shopkeeper gives two successive discounts of 10% each. The equivalent single discount is:

(a) 20% (b) 18% (c) 19% (d) 21%


Q33. The profit earned by selling an article for Rs. 900 is double the loss incurred when the article is sold for Rs. 450. At what price should the article be sold to make a 25% profit?

(a) Rs. 700 (b) Rs. 750 (c) Rs. 800 (d) Rs. 825


Q34. A trader bought goods worth Rs. 35,000. He sold 1/4 of them at 10% loss, 1/2 at 10% profit, and the rest at 20% profit. His overall profit percentage is:

(a) 6% (b) 7.5% (c) 8% (d) 9.5%


Q35. A shopkeeper marks his goods at 40% above cost price and gives 25% discount to customers. If his cost price is Rs. 2,000, what is his profit?

(a) Rs. 100 (b) Rs. 200 (c) Rs. 50 (d) Rs. 100


Q36. A dealer claims to sell at 5% loss but cheats on weight by using 850g instead of 1 kg. His real profit/loss percentage is:

(a) 10.5% profit (b) 11.76% profit (c) 12.5% profit (d) 15% profit


Q37. An article passes through three dealers, each of whom makes a profit of 20%. If the last selling price is Rs. 8,640, the original cost price is:

(a) Rs. 4,000 (b) Rs. 5,000 (c) Rs. 4,500 (d) Rs. 6,000


Q38. Two articles are bought for Rs. 8,000 total. The first is sold at 20% profit and the second at 10% loss. If there is no overall profit or loss, the cost price of the first article is:

(a) Rs. 2,000 (b) Rs. 2,667 (c) Rs. 3,000 (d) Rs. 3,200


Q39. A man sells two articles at Rs. 3,600 each, gaining 20% on the first and losing 20% on the second. His net gain or loss percent is:

(a) 4% loss (b) 4% gain (c) No gain no loss (d) 2% loss


Q40. A shopkeeper buys goods at 20% discount on the marked price. If he sells them at the marked price, his profit percentage is:

(a) 20% (b) 25% (c) 30% (d) 16.67%


Q41. In a "Buy 3 Get 2 Free" offer, if the shopkeeper's markup is 80% above cost price, what is his profit or loss percentage?

(a) 8% profit (b) 6% loss (c) 8% loss (d) 10% profit


Q42. A manufacturer sells goods to a wholesaler at 10% profit, the wholesaler sells to a retailer at 20% profit, and the retailer sells to a customer at 25% profit. If the customer pays Rs. 8,250, the manufacturing cost is:

(a) Rs. 4,000 (b) Rs. 5,000 (c) Rs. 4,500 (d) Rs. 5,500


Answer Key with Explanations


Q1. Answer: (c) Rs. 460

SP = CP x (100 + Profit%) / 100
   = 400 x 115/100 = Rs. 460

Q2. Answer: (b) Rs. 700

CP = SP x 100 / (100 - Loss%)
   = 630 x 100 / 90 = Rs. 700

Q3. Answer: (c) 20%

Loss = 1500 - 1200 = Rs. 300
Loss% = (300/1500) x 100 = 20%

Q4. Answer: (c) 20%

Profit% = (50/250) x 100 = 20%

Q5. Answer: (a) Rs. 680

SP = 800 x (100 - 15)/100 = 800 x 85/100 = Rs. 680

Q6. Answer: (d) 20%

Profit = 72 - 60 = Rs. 12
Profit% = (12/60) x 100 = 20%

Q7. Answer: (b) Rs. 600

CP = SP x 100 / (100 + Profit%)
   = 780 x 100/130 = Rs. 600

Q8. Answer: (c) 10%

Loss = 950 - 855 = Rs. 95
Loss% = (95/950) x 100 = 10%

Q9. Answer: (b) Rs. 600

MP = CP x (100 + 25)/100 = 480 x 125/100 = Rs. 600

Q10. Answer: (c) Rs. 190

SP = 200 x (100 - 5)/100 = 200 x 95/100 = Rs. 190

Q11. Answer: (b) 20%

CP = SP - Profit = 120 - 20 = Rs. 100
Profit% = (20/100) x 100 = 20%

Q12. Answer: (b) 20%

Effective CP = 3200 + 300 = Rs. 3,500
Profit = 4200 - 3500 = Rs. 700
Profit% = (700/3500) x 100 = 20%

Q13. Answer: (b) 25%

Let CP of 1 pen = Rs. 1
CP of 20 pens = Rs. 20 = SP of 16 pens
SP of 1 pen = 20/16 = Rs. 1.25
Profit% = (0.25/1) x 100 = 25%

Q14. Answer: (b) 25%

CP per mango = 20/5 = Rs. 4
SP per mango = 20/4 = Rs. 5
Profit% = (1/4) x 100 = 25%

Q15. Answer: (b) Rs. 375

SP = 500 x 90/100 = Rs. 450
CP = SP x 100 / (100 + 20) = 450 x 100/120 = Rs. 375

Q16. Answer: (b) 19%

Net% = M - D - (M x D)/100
     = 40 - 15 - (40 x 15)/100
     = 40 - 15 - 6 = 19%

Q17. Answer: (b) 28%

Equivalent discount = 10 + 20 - (10 x 20)/100
                    = 30 - 2 = 28%

Q18. Answer: (b) 6.25% loss

Loss% = x^2/100 = (25)^2/100 = 625/100 = 6.25% loss

Q19. Answer: (c) 11.11%

Profit% = (Error / False Weight) x 100
        = (100/900) x 100 = 11.11%

Q20. Answer: (b) 20%

Effective discount = Y/(X+Y) x 100 = 1/(4+1) x 100 = 20%

Q21. Answer: (b) Decreases

Let CP = 100, SP = 120 (20% profit)
New CP = 200, New SP = 220
New Profit% = (20/200) x 100 = 10%

Profit% decreases because the same absolute profit (Rs. 20)
is now a smaller percentage of a larger CP.

Q22. Answer: (c) Rs. 1,000

Let CP = C
SP at 5% profit  = 1.05C
SP at 20% profit = 1.20C
Difference = 0.15C = 150
C = 150/0.15 = Rs. 1,000

Q23. Answer: (a) 4% profit

Net% = 30 - 20 - (30 x 20)/100
     = 30 - 20 - 6 = 4% profit

Q24. Answer: (d) 40%

CP per orange = 60/12 = Rs. 5
SP per orange = 56/8 = Rs. 7
Profit% = (2/5) x 100 = 40%

Q25. Answer: (a) Rs. 684

Final price = 1000 x 0.80 x 0.90 x 0.95
            = 1000 x 0.684 = Rs. 684

Q26. Answer: (b) Rs. 600

Let CP = C
SP at 10% loss = 0.9C
SP at 5% gain  = 1.05C
Difference = 0.15C = 90
C = 90/0.15 = Rs. 600

Q27. Answer: (b) 20%

Need: M - D - (M x D)/100 >= 20
50 - D - (50D)/100 >= 20
50 - D - D/2 >= 20
50 - 3D/2 >= 20
3D/2 <= 30
D <= 20%
Maximum discount = 20%

Q28. Answer: (d) 50%

Profit = SP/3
CP = SP - SP/3 = 2SP/3
Profit% = (SP/3) / (2SP/3) x 100
        = (1/3) x (3/2) x 100 = 50%

Using shortcut: Profit = (1/n) of SP, Profit% = 100/(n-1)
= 100/(3-1) = 50%

Q29. Answer: (b) 3 : 4 : 6

A = 10,000 x 6 = 60,000
B = 20,000 x 4 = 80,000
C = 15,000 x 8 = 1,20,000
Ratio = 60 : 80 : 120 = 3 : 4 : 6

Q30. Answer: (d) Rs. 1,000

Let original CP = C.
Original SP = 1.1C (10% gain)

New CP = 0.8C (bought for 20% less)
New SP = 1.1C + 20 (sold for Rs. 20 more than original SP)
New gain = 40% on new CP

New SP = 0.8C x 1.4 = 1.12C

So: 1.12C = 1.1C + 20
    0.02C = 20
    C = Rs. 1,000

Verification:
    Original: CP = 1000, SP = 1100 (10% gain)
    New: CP = 800, SP = 1100 + 20 = 1120
    Gain = 1120 - 800 = 320
    Gain% = (320/800) x 100 = 40% (correct)

Q31. Answer: (b) 4.17%

Error = 1000 - 960 = 40g
Profit% = (40/960) x 100 = 4.17%

Q32. Answer: (c) 19%

Equivalent discount = 10 + 10 - (10 x 10)/100
                    = 20 - 1 = 19%

Q33. Answer: (b) Rs. 750

Let CP = C
Profit when sold at 900 = 900 - C
Loss when sold at 450   = C - 450

Given: Profit = 2 x Loss
900 - C = 2(C - 450)
900 - C = 2C - 900
1800 = 3C
C = Rs. 600

SP for 25% profit = 600 x 125/100 = Rs. 750

Q34. Answer: (b) 7.5%

Total goods = Rs. 35,000

1/4 at 10% loss:   35000 x 1/4 = 8,750   --> loss = 875
1/2 at 10% profit: 35000 x 1/2 = 17,500  --> profit = 1,750
Rest (1/4) at 20%: 35000 x 1/4 = 8,750   --> profit = 1,750

Net profit = -875 + 1750 + 1750 = Rs. 2,625
Profit% = (2625 / 35000) x 100 = 7.5%

Using weighted average shortcut:
Overall % = (1/4)(-10) + (1/2)(10) + (1/4)(20)
          = -2.5 + 5 + 5 = 7.5%

Q35. Answer: (a) Rs. 100

MP = 2000 x 140/100 = Rs. 2,800
SP = 2800 x 75/100  = Rs. 2,100
Profit = 2100 - 2000 = Rs. 100

(Or use combined: Net% = 40 - 25 - (40x25)/100 = 40 - 25 - 10 = 5%
Profit = 5% of 2000 = Rs. 100)

Q36. Answer: (b) 11.76%

Effective multiplier = (1000/850) x (95/100)
                     = (20/17) x (19/20)
                     = 19/17
                     = 1.1176

Profit% = (1.1176 - 1) x 100 = 11.76%

Q37. Answer: (b) Rs. 5,000

Each dealer adds 20% profit. Three dealers:
Final SP = CP x (1.2)^3

8640 = CP x 1.728
CP = 8640/1.728 = Rs. 5,000

Q38. Answer: (b) Rs. 2,667

Let CP of 1st article = x
CP of 2nd article = 8000 - x

No overall profit/loss: Total SP = Rs. 8,000

SP1 = 1.2x
SP2 = 0.9(8000 - x)

1.2x + 0.9(8000 - x) = 8000
1.2x + 7200 - 0.9x = 8000
0.3x = 800
x = 2666.67 ≈ Rs. 2,667

Q39. Answer: (a) 4% loss

Same SP, same profit% and loss% of 20%:
Net Loss% = x^2/100 = (20)^2/100 = 400/100 = 4% loss

Q40. Answer: (b) 25%

Let MP = Rs. 100
CP = 100 x 80/100 = Rs. 80 (20% discount on MP)
SP = Rs. 100 (sells at MP)
Profit = 100 - 80 = Rs. 20
Profit% = (20/80) x 100 = 25%

Q41. Answer: (a) 8% profit

Let CP of each item = Rs. 100
MP of each item = Rs. 180 (80% markup)

Customer buys 3, gets 2 free = 5 items total
Shopkeeper's cost = 5 x 100 = Rs. 500
Revenue = 3 x 180 = Rs. 540

Profit = 540 - 500 = Rs. 40
Profit% = (40/500) x 100 = 8%

Q42. Answer: (b) Rs. 5,000

Let manufacturing cost = C

Customer pays = C x 1.1 x 1.2 x 1.25 = C x 1.65

8250 = C x 1.65
C = 8250/1.65 = Rs. 5,000

Score Guide

Marks out of 42:

 38 - 42  :  Excellent -- Ready for competitive exams
 30 - 37  :  Good -- Review the problems you got wrong
 20 - 29  :  Average -- Re-study concepts and shortcuts
 Below 20 :  Needs Work -- Go through 8.2.a and 8.2.b again