Another compilation of important questions for IBM Placement preparation and IBM interview Preparation from the very important topic of Profit and Loss to help you guys prepare for IBM placements papers. Remember to succeed a person need to work hard. so, practice these questions and others as well to get benefit of Tutorial Diary.

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Question: A salesman marks an item 60% above the cost price
& offers 2 successive discounts of 25% & 15% on the marked price. His earned
profit is:

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(a) 20

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(b) 2

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(c) 10

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(d) 1

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Answer: (b)

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Solution:

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let cost price
is 100

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Question: It cost a college Rs.0.70 a copy to produce a
Programmed for the homecoming football game. If Rs.15,000/- was received for
advertisements in the programme, how many copies at Rs.0.50 a copy must be sold
to make a profit of Rs.8000/- ?

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(a) 35000

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(b) 32000

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(c) 16000

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(d) 15000

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Answer: (a)

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Solution:

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Let the no. of
copies be x.

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Question: If a person sells a product for rs141/- he
suffers a loss of 6%.if he has to have a profit of 10%,

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(a) 155

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(b) 165

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(c) 140

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(d) 170

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Answer: (b)

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Solution: CP=(141/94)*100=150

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Question: The cost price of 20 articles is the same as the
selling price of x articles. If the profit is 25%, then the value of x is:

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(a) 15

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(b) 18

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(c) 16

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(d) 25

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Answer: (c)

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Solution: LET C.P.=20,S.P.=X

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Question: By selling a product a seller is gaining 10% on
selling price. If he sell that product Rs.80 less, he would have been losing
10%. What is the cost price?

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(a) 400

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(b) 200

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(c) 300

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(d) 378

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Answer: (a)

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Solution:

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let CP be x

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Question: A tape manufacturer reduces the price of his
heavy duty tape from Rs.30/- to Rs.28/- a reel and the price of a regular tape
from Rs.24/- to Rs.23/- a reel. A computing centre normally spends Rs.1440/- a
month for tapes and 3/4 of this is for heavy duty tapes. How much will they
save a month under the new prices?

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(a) 27

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(b) 37

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(c) 87

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(d) 97

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Answer: (c)

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Solution:

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Total
Expenditure on tapes=Rs.1440

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(a) 32000

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(b) 24000

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(c) 34000

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(d) 35000

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Answer: (c)

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Solution: Let the price of the machine = x rupee

###

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(a) 32000

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(b) 24000

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(c) 34000

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(d) 35000

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Answer: (a)

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Solution: Let the Total Income be X.

###
Question: A salesman marks an item 60% above the cost price
& offers 2 successive discounts of 25% & 15% on the marked price. His earned
profit is:

###
(a) 20

###
(b) 2

###
(c) 10

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(d) 1

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Answer: (b)

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Solution:

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let cost price
is 100

mark price= 160

after 25% of discount the cost is 160*.75=120

after 15% of discount the cost is 120*0.85=102

so the profit is 2 rupees

or 2%

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Question: It cost a college Rs.0.70 a copy to produce a
Programmed for the homecoming football game. If Rs.15,000/- was received for
advertisements in the programme, how many copies at Rs.0.50 a copy must be sold
to make a profit of Rs.8000/- ?

###
(a) 35000

###
(b) 32000

###
(c) 16000

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(d) 15000

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Answer: (a)

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Solution:

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Let the no. of
copies be x.

We know Profit = Selling Price - Cost Price.

Here s.p = Rs. 0.5*x

c.p = Rs. 0.7*x-15000

profit = Rs. 8000

Therefore, 8000 = 0.5x - (0.7x - 15000)

x = 35000

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Question: If a person sells a product for rs141/- he
suffers a loss of 6%.if he has to have a profit of 10%,

at what price should he sell it?

###
(a) 155

###
(b) 165

###
(c) 140

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(d) 170

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Answer: (b)

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Solution: CP=(141/94)*100=150

Now to make a profit of 10%, the SP would be

150*110/100=165

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Question: The cost price of 20 articles is the same as the
selling price of x articles. If the profit is 25%, then the value of x is:

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(a) 15

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(b) 18

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(c) 16

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(d) 25

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Answer: (c)

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Solution: LET C.P.=20,S.P.=X

WE KNOW THAT,GAIN=(S.P.-C.P.)/S.P.

SO AS PER QUESTION, (20-X)/X=25/100=16(ANS)

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Question: By selling a product a seller is gaining 10% on
selling price. If he sell that product Rs.80 less, he would have been losing
10%. What is the cost price?

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(a) 400

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(b) 200

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(c) 300

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(d) 378

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Answer: (a)

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Solution:

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let CP be x

then SP =1.1x(considering 10% gain)

again,

SP =x-((10/100)*x) =0.9x (considering 10% loss)

now,

1.1x-0.9x=80

so , x= 400

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Question: A tape manufacturer reduces the price of his
heavy duty tape from Rs.30/- to Rs.28/- a reel and the price of a regular tape
from Rs.24/- to Rs.23/- a reel. A computing centre normally spends Rs.1440/- a
month for tapes and 3/4 of this is for heavy duty tapes. How much will they
save a month under the new prices?

###
(a) 27

###
(b) 37

###
(c) 87

###
(d) 97

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Answer: (c)

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Solution:

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Total
Expenditure on tapes=Rs.1440

Total Expenditure on heavy duty
tapes=3/4*1440=Rs.1080

Total reels of heavy duty tape=1080/30=36

Total savings on heavy duty tape=36*(30-28)=Rs.72

Total Expenditure on regular tapes=1/4*1440=Rs.360

Total reels of regular tape=360/24=15

Total savings on regular tape=15*(24-23)=Rs.15

Total Savings=Rs.72+Rs.15=Rs.87

Question: A company rented a
machine for Rs.700/- a month. Five years later the treasurer calculated that if
the company had purchased the machine and paid Rs.100/- monthly maintenance
charge, the company would have saved Rs.2000/-. What was the purchase price of
the machine?

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(a) 32000

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(b) 24000

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(c) 34000

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(d) 35000

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Answer: (c)

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Solution: Let the price of the machine = x rupee

5 year maintenance charge = 100*60 = 6000

so total investment = x+6000

now total rental charges for five year = 700*60 =
42000

so according to given condition 42000-x-6000 =
2000 so x = 34000

Question: From its total income,
A sales company spent Rs.20,000 for advertising, half of the remainder on
commissions and had Rs.6000 left. What was its total income?