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Profit, Loss and Discount questions for IPMAT, with solutions

10 free Profit, Loss and Discount practice questions for IPMAT Indore, Rohtak and JIPMAT, each with the answer and a full worked solution. No sign-in. Try each one first, then open the solution. The lessons for this chapter are in Profit, Loss and Discount on Learn.

1. Question 1Multiple choiceWritten by IPMATwayProfit and Loss Basics

   The cost price of $20$ pens equals the selling price of $16$ pens. The profit percentage is

   1. A.$25\%$
   2. B.$4\%$
   3. C.$80\%$
   4. D.$20\%$
   Show the answer and solution

   Answer: A. $25\%$

   Let one pen cost ₹$1$. Then $20$ pens cost $20$, which equals the selling price of $16$ pens. So $16$ pens cost $16$ and sell for $20$. Profit $=4$ on a cost of $16$: $\frac{4}{16}\times100=25\%$.

2. Question 2Multiple choiceWritten by IPMATwayMarked Price and Discount

   The list price of an article is ₹$2000$. It is sold after successive discounts of $20\%$ and $10\%$. Its selling price (in ₹) is

   1. A.₹$1600$
   2. B.₹$1440$
   3. C.₹$1800$
   4. D.₹$1400$
   Show the answer and solution

   Answer: B. ₹$1440$

   Successive discounts are applied one after the other. After $20\%$ off: $2000\times0.8=1600$. The $10\%$ is then taken on $1600$: $1600\times0.9=1440$. So the selling price is ₹$1440$ (a single equivalent discount of $28\%$, not $30\%$).

3. Question 3Type the answerWritten by IPMATwayMixed Sales and Dishonest Dealers

   A milkman buys milk at ₹$40$ per litre, mixes water with it in the ratio $1:4$ (water : milk) and sells the mixture at ₹$40$ per litre. Find his profit percentage.

   Show the answer and solution

   Answer: 25

   For every $4$ litres of milk (cost $160$) he sells $5$ litres at $40$, i.e. $200$. Profit $40$ on $160$: $25\%$ (not $20\%$, which divides by the mixture).

4. Question 4Multiple choiceWritten by IPMATwayMarked Price and Discount

   The marked price of a table is ₹$1500$, which is $25\%$ above its cost price. It is sold at a discount of $12\%$. The profit percentage is

   1. A.$10\%$
   2. B.$8\%$
   3. C.$13\%$
   4. D.$17\frac{1}{3}\%$
   Show the answer and solution

   Answer: A. $10\%$

   'Marked $25\%$ above cost' means MP $=1.25\times$CP, so CP $=\frac{1500}{1.25}=1200$. A $12\%$ discount gives SP $=0.88\times1500=1320$. Profit $=1320-1200=120$. Profit percentage $=\frac{120}{1200}\times100=10\%$.

5. Question 5Multiple choiceWritten by IPMATwayCosts, Overheads and Resale Chains

   Asha sold a plot to Bina at a $20\%$ profit, and Bina sold it to Charu at a $25\%$ profit. Deepa had bought an identical plot for the same price as Asha; she sold it to Esha at a $20\%$ loss, and Esha sold it to Farah at a $25\%$ loss. Charu and Farah together paid ₹$220000$ more than Asha had paid for her plot. What had Asha paid (in ₹)?

   1. A.₹$220000$
   2. B.₹$2200000$
   3. C.₹$200000$
   4. D.₹$242000$
   Show the answer and solution

   Answer: C. ₹$200000$

   Let each plot originally cost $x$. Charu paid $x\times1.2\times1.25=1.5x$. Farah paid $x\times0.8\times0.75=0.6x$. Together they paid $1.5x+0.6x=2.1x$. This is $220000$ more than $x$: $2.1x-x=1.1x=220000$. So $x=200000$.

6. Question 6Type the answerWritten by IPMATwayCosts, Overheads and Resale Chains

   A manufacturer has an order for $22000$ articles at ₹$7.5$ each. He expects $12\%$ of the articles he produces to be rejected, and each article costs ₹$5$ to produce. What is his profit (in ₹) on the order?

   Show the answer and solution

   Answer: 40000

   Only $88\%$ of production can be delivered, so he must produce $\frac{22000}{0.88}=25000$ articles (not $22000\times1.12$). Cost $=25000\times5=125000$, revenue $=22000\times7.5=165000$, profit $=40000$.

7. Question 7Multiple choiceWritten by IPMATwayCosts, Overheads and Resale Chains

   A manufacturer's cost of producing an item rises by ₹$18$, and he raises its selling price by ₹$30$. As a result his profit (in rupees) rises by $8\%$. Which of the following can be determined from this?

   (i) the profit in rupees before the change

   (ii) the cost price

   (iii) the selling price

   (iv) the profit percentage

   1. A.(i) and (ii) only
   2. B.(i), (ii) and (iii) only
   3. C.All four
   4. D.Only (i)
   Show the answer and solution

   Answer: D. Only (i)

   The profit increases by $30-18=12$ rupees, and this is $8\%$ of the original profit, so the original profit was $150$ (and the new one $162$). The data fix only the difference SP $-$ CP, so the cost, the selling price and the profit percentage stay unknown.

8. Question 8Multiple choiceWritten by IPMATwayMixed Sales and Dishonest Dealers

   A shopkeeper cheats by $10\%$ while buying as well as while selling: he takes $1100$ g when paying for $1$ kg, and gives $900$ g when charging for $1$ kg. He buys and sells at the same price per kg. His gain percentage is

   1. A.$11\frac{1}{9}\%$
   2. B.$21\%$
   3. C.$22\frac{2}{9}\%$
   4. D.$20\%$
   Show the answer and solution

   Answer: C. $22\frac{2}{9}\%$

   For the price of $1000$ g he gets $1100$ g, and he sells them in lots of $900$ g priced as $1000$ g. Revenue $\frac{1100}{900}\times$ cost, a gain of $\frac{200}{900}=22\frac29\%$.

9. Question 9Multiple choiceWritten by IPMATwayProfit and Loss Basics

   A trader finds that his profit on selling $12$ pens is equal to the selling price of $3$ pens. He then reduces his selling price by $10\%$. What is his profit percent now?

   1. A.$23\frac13\%$
   2. B.$20\%$
   3. C.$25\%$
   4. D.$30\%$
   Show the answer and solution

   Answer: B. $20\%$

   Let the cost price of a pen be $c$ and the selling price $s$. Profit on $12$ pens is $12(s-c)$, equal to $3s$. So $12s-12c=3s$, giving $9s=12c$ and $s=\frac43c$ (profit $33\frac13\%$). After a $10\%$ cut the price is $0.9\times\frac43c=1.2c$, a profit of $20\%$. The $10\%$ cut acts on the selling price, so it is not the same as subtracting $10$ points from the profit percent.

10. Question 10Multiple choiceWritten by IPMATwayProfit and Loss Basics

    When an article is sold for Rs $810$ the profit is exactly three times the loss incurred when it is sold for Rs $630$. What is the profit percent when it is sold for Rs $756$?

    1. A.$20\%$
    2. B.$112\%$
    3. C.$12\%$
    4. D.$6\frac23\%$
    Show the answer and solution

    Answer: C. $12\%$

    At Rs $810$ the profit is $810-c$; at Rs $630$ the loss is $c-630$ (the cost must exceed $630$). So $810-c=3(c-630)$, which gives $4c=2700$ and $c=675$. At Rs $756$ the profit is $756-675=81$, and $\frac{81}{675}=0.12$, i.e. $12\%$. Check: the profit at $810$ is $135$, the loss at $630$ is $45$, and $135=3\times45$.