Question 1

1. A manufacturer marks an article 40% above the cost price and allows two successive discounts of 10% and 5% to a retailer. What is the net profit percentage for the manufacturer?

A) 25%B) 20.5%C) 19.7%D) 18.2%

Answer

✓ Correct Answer: Option C

Explanation: Solution: Let Cost Price (CP) = 100. Marked Price (MP) = 100 + 40% of 100 = 140. First discount stage: 140 - (10% of 140) = 140 - 14 = 126. Second discount stage: 126 - (5% of 126) = 126 - 6.3 = 119.7. Net Selling Price (SP) = 119.7. $Net Profit Percentage = SP - CP = 119.7 - 100 = 19.7%.$

Question 2

2. A dishonest shopkeeper claims to sell his goods at a loss of 4%, but he uses a weight of 900 grams instead of 1 kg. What is his actual profit percentage?

A) 6.25%

Question 3

3. If a merchant estimates his profit as 20% of the selling price, what is his actual profit percentage calculated on the cost price?

A) 16.66%B) 20%C) 22.5%D) 25%

Answer

✓ Correct Answer: Option D

Explanation: Solution: Let SP = 100. Profit Margin = 20% of 100 = 20. CP = SP - Profit = 100 - 20 = 80. $$Actual Profit Percentage (on CP) = \left(\frac{20}{80}\right) \times 100 = 25%.$$

Question 4

4. A sold an item to B at a gain of 20%. B sold it to C at a loss of 10%. If C paid $\1080 for it, at what price did A purchase the item?

A) $\1000B) $\950C) $\1100D) $\1050

Answer

✓ Correct Answer: Option A

Explanation: Solution: Let A's purchasing cost (CP) be x. B's acquisition price = $x \times 1.20$. C's final purchase price = $(x \times 1.20) \times 0.90 = 1.08x$. Given that 1.08x = 1080: $$x = \frac{1080}{1.08} = 1000.$$ A purchased the item for **$\1000**.

Question 5

5. By selling 45 lemons for \40, a man loses 20%. How many lemons should he sell for\24 to gain 20% in the transaction?

A) 15B) 20C) 18D) 22

Answer

✓ Correct Answer: Option C

Explanation: Solution: SP of 45 lemons = \40 ⇒ SPof 1 lemon =\frac{40}{45} = \frac{8}{9}$. Since this transaction hits a 20% loss, CP of 1 lemon = $\frac{8/9}{0.80} = \frac{8}{9} \times \frac{5}{4} = \frac{10}{9}$. To target a clean 20% gain, target $SP of 1 lemon = \frac{10}{9} \times 1.20 = \frac{10}{9} \times \frac{6}{5} = \frac{4}{3}$. $Target Lemon Volume for \24 = \frac{24}{4/3} = 24 \times \frac{3}{4} = 18 lemons.$$

Question 6

6. A trader gives a discount of 10% on the marked price. To gain 17%, by what percentage must he mark up his goods over the cost price?

A) 27%B) 30%C) 33%D) 35%

Answer

✓ Correct Answer: Option B

Explanation: Solution: Let CP = 100. Target Profit = 17% ⇒ SP = 117. Let Marked Price be MP. Given a discount factor of 10%: $$0.90 \times MP = 117 ⇒ MP = \frac{117}{0.9} = 130.$$ $Markup Value = 130 - 100 = 30%.$

Question 7

7. A man sells two articles for $\990 each. On one he gains 10% and on the other he loses 10%. What is his total gain or loss?

A) Loss of $\20B) Gain of $\20C) Loss of 1% but no dollar value changeD) No profit, no loss

Answer

✓ Correct Answer: Option A

Explanation: Solution: * Article 1 (Gain): $SP = 990, Gain = 10% ⇒ CP_1 = \frac{990}{1.1} = 900$. * Article 2 (Loss): $SP = 990, Loss = 10% ⇒ CP_2 = \frac{990}{0.9} = 1100$. Total cost asset pool CP = 900 + 1100 = 2000. Total revenue output SP = 990 + 990 = 1980. $Net Loss = Total CP - Total SP = 2000 - 1980 = \20.$$

Question 8

8. If the selling price of an article is doubled, the profit triples. What was the original profit percentage?

A) 50%B) 75%C) 120%D) 100%

Answer

✓ Correct Answer: Option D

Explanation: Solution: Let CP = x and initial SP = y. Initial profit setup P = y - x. New selling threshold = 2y ⇒ New Profit = 2y - x. According to the constraints: $2y - x = 3(y - x)$ $2y - x = 3y - 3x ⇒ y = 2x.$ Substituting back shows original profit = y - x = 2x - x = x. $$Original Profit Percentage = \left(\frac{x}{x}\right) \times 100 = 100%.$$

Question 9

9. The cost price of 15 articles is equal to the selling price of 12 articles. Find the profit or loss percentage.

A) 25% GainB) 20% GainC) 25% LossD) 20% Loss

Answer

✓ Correct Answer: Option A

Explanation: Solution: $$15 \times CP = 12 \times SP ⇒ \frac{SP}{CP} = \frac{15}{12} = \frac{5}{4}.$$ Assigning ratios, let CP = 4 and SP = 5. Profit Margin Amount = 5 - 4 = 1. $$Net Profit Percentage = \left(\frac{1}{4}\right) \times 100 = 25% Gain.$$

Question 10

10. An offer says "Buy 5 Get 4 Free". Additionally, the shopkeeper gives a 20% cash discount. What is the total effective discount percentage?

A) 44.44%B) 55.55%C) 60%D) 52.5%

Answer

✓ Correct Answer: Option B

Explanation: Solution: Total item allocation inventory given = 5 + 4 = 9 articles. Free product units component = 4. $$Primary Product Discount Percentage = \left(\frac{4}{9}\right) \times 100 = 44.44%.$$ Remaining asset baseline value factor = 100% - 44.44% = 55.56%. Additional 20% sequential cash discount on remaining value $= 55.56 \times 0.20 = 11.11%$. $Total Effective Discount = 44.44% + 11.11% = 55.55%.$

Accepted Answer

✓ Correct Answer: Option B

Explanation: Solution: Let the true CP of 1000 g be 1000 units. Claimed selling profile SP = 1000 - 4% = 960 units. Actual physical quantity delivered = 900 g. Effective cost of this quantity = 900 units. $Absolute Profit Amount = SP - Actual CP = 960 - 900 = 60\text; units.$ $$Real Profit Percentage = \left(\frac{60}{900}\right) \times 100 = \frac{100}{15} \approx 6.66%.$$

Profit and Loss Quiz (Set 2)

1. A manufacturer marks an article 40% above the cost price and allows two successive discounts of 10% and 5% to a retailer. What is the net profit percentage for the manufacturer?

2. A dishonest shopkeeper claims to sell his goods at a loss of 4%, but he uses a weight of 900 grams instead of 1 kg. What is his actual profit percentage?

3. If a merchant estimates his profit as 20% of the selling price, what is his actual profit percentage calculated on the cost price?

4. A sold an item to B at a gain of 20%. B sold it to C at a loss of 10%. If C paid $\1080 for it, at what price did A purchase the item?

5. By selling 45 lemons for \40, a man loses 20%. How many lemons should he sell for\24 to gain 20% in the transaction?

6. A trader gives a discount of 10% on the marked price. To gain 17%, by what percentage must he mark up his goods over the cost price?

7. A man sells two articles for $\990 each. On one he gains 10% and on the other he loses 10%. What is his total gain or loss?

8. If the selling price of an article is doubled, the profit triples. What was the original profit percentage?

9. The cost price of 15 articles is equal to the selling price of 12 articles. Find the profit or loss percentage.

10. An offer says "Buy 5 Get 4 Free". Additionally, the shopkeeper gives a 20% cash discount. What is the total effective discount percentage?