# Practice Test on Profit and Loss | Profit and Loss Practice Questions

Solving the Profit and Loss Questions can give you an idea of how to solve related problems. Know different methods and formulae involved to calculate the Profit and Loss. Try to solve the Profit and Loss Questions on your own and then verify your solution with ours to know where you went wrong. By solving them regularly you can increase your speed and accuracy thereby attempt the exam well and score better grades in the exam.

Question 1:

If the manufacturer gains 15%, the wholesale dealer gets 20% and the retailer gets 30%, then find the cost of production of a blackboard, the retail price of which is $1360? Solution: Cost of production of blackboard be ‘X’ 115% of 120% of 130% of cost price is i.e. $$\frac { 115 }{ 120 }$$*$$\frac { 120 }{ 100 }$$*$$\frac { 130}{ 100}$$*1360 Cost of production of a blackboard$ 758.08

Question 2:

A man bought a dog and a kennel for $4500. He sold the dog at a gain of 25% and the carriage at a loss of 15%, thereby gaining 3% on the whole. Find the cost of the dog. Solution: Cost price (C.P.) of dog ‘X’ Cost price (C.P.) of kennel ‘4500 – X’ 25% of x – 15% of (4500 – X) = 3% of 4500 Cost of a dog is$ 1373.68.

Question 3:

Profit earned by selling television for $6000 is 25% more than the loss incurred by selling the article for$ 4500. At what price should the article be sold to earn 25% profit?

Solution:

let cost price (C.P.) be ‘X’

By equalizing,

(6000 – X) = $$\frac { 125 }{ 100 }$$*(X-4500)

Desired selling price of the television is $6458.3. Question 4: A manufacturer undertakes to supply 2200 pieces of a particular component at$ 30 per piece. According to his estimates, even if 6% fail to pass the quality tests, then he will make a profit of 30%. However, as it turned out, 60% of the components were rejected. What is the loss to the manufacturer?

Solution:

Incurred cost = $($$\frac { 100 }{ 130 }$$*30*(94% of 2200)) Loss = C.P. – S.P. The loss to the manufacturer is$ 8123.07.

Question 5:

John bought a lorry for a certain sum of money. He spent 15% of the cost on repairs and sold the lorry for a profit of $1600. How did he spend on repairs if he made a profit of 30%? Solution: Let the Cost price (C.P.) of the lorry be ‘X’ Profit (P) =$16,00

Profit (%) = 30

Profit (%) = $$\frac { 100 }{ CP }$$*P

30 = $$\frac { 100 }{ CP}$$*1600

CP = $$\frac { 100 }{ CP}$$*1600

CP = $$\frac { 100 }{ 30}$$*1600

= $5333.3 The C.P Includes both original price and repairs cost C.P +0.15C.P =$5333.3

1.15 C.P = $5333.3 C.P =$4637.68

Repairs Cost = Total Cost Price – Cost Price for which john bought the lorry

= $5333.3 –$4637.68

= $695.61 Expenditure spend on repairs =$ 695.61.

Question 6:

A boy bought 25 litres of milk at the rate of $12 per litre. He got it churned after spending$ 15 and 7kg of cream and 25 lit of toned milk were obtained. If he sold the cream at $40 per kg and toned milk at$ 6 per lit, what is his profit % in the transaction?

Solution:

Cost price (C.P.) = $((25*12) + 15) Selling price (S.P.) =$ ((7*40) + (25*6))

Gained profit % on the above transaction is 36.50%.

Question 7:

Arun purchased 150 reams of paper at $90 per ream. He spent$ 300 on transportation, paid local tax at the rate of 50 paise per ream, and paid $76 to coolie. If he wants to have a gain of 10%, what must be the selling price per ream? Solution: Total investment =$ (((150*90) + 300) + ((50/100 * 150) + 76))

Find selling price per ream

Selling price per ream = $102.3 Question 8: A retailer mixes three varieties of dal costing$ 50, $25, and$ 30 per kg in the ratio 3: 5: 2 in terms of weight, and sells the mixture at $35 per kg. What percentage of profit does he make? Solution: Cost price (C.P.) of dal for 10 kgs =$ ((3*50) + (5*25) + (2*30))

Selling price for 10 kgs = $(10*35) Profit percentage on transactions is 4.74%. Question 9: A man buys chocolates at 3 for$ 2 and an equal number at 5 for $3 and sells the whole at 6 for$ 4. His gain or loss percent is?

Solution:

Suppose he buys 7 eggs of each kind

Find C.P. and S.P. for 14 eggs

C.P. = $(($$\frac { 2 }{ 3 }$$ * 7) + ($$\frac { 3 }{ 5 }$$ * 7)) =$ 8.86

Similarly, find S.P.

The gain % obtain is 5.34%.

Question 10:

The manufacturer of a certain item can sell all he can produce at the selling price of $65 each. It costs him$ 45 in material and labor to produce each item and he has overhead expenses of $3500 per week in order to operate the plant. The number of units he should produce and sell in order to make a profit of at least$ 1200 per week is?

Solution:

Consider he produces ‘x’ items

Cost price (C.P.) = $(45x + 3500) Selling price (S.P.) =$ 65x

The number of units produced per week to gain profit is 235.