CAT Understanding the concept of CP, SP, MP, Profit, Loss and discount - Practice Questions & MCQ
Quick Facts
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14 Questions around this concept.
Solve by difficulty
EASYA shopkeeper fixed the selling price of goods to be the same as the cost price. He sold one-third of his stock at this price, one-third of his stock at a price 70% more than the cost price, and the rest were not sold due to the bad quality of the goods. Find the gain or loss percentage altogether.
A fruit seller has 4 varieties of fruits A, B, C, and D. The Ratio of number of A and number of D is 8 to 5, and the ratio of the number of A and B is 3 to 4. If the ratio of the number of C to the number of D is 3 to 2. He purchased all the fruits at the same rate but sold variety A at profit, B at
loss while C and D at the purchase price. What is the net profit or loss percent he has incurred?
If books bought at prices ranging from Rs. 200 to Rs. 350 are sold at prices ranging from Rs. 300 to Rs. 425, what is the greatest possible profit that might be made in selling eight books ?
Concepts Covered - 1
Definitions:
1. CP (Cost Price): It is the price at which an article is purchased.
2. SP (Selling Price): It is the price at which an article is sold.
3. MP (Marked Price or List Price): It is the price marked on the article. Discounts are generally calculated on this price.
4. Profit or Gain: When SP > CP, the seller makes a profit.
Profit = SP - CP
5. Loss: When CP > SP, the seller incurs a loss.
Loss = CP - SP
6. Discount: It's a reduction given on the marked price (MP).
Discount = MP - SP
Foundation Building Questions:
Question 1 :
A shopkeeper purchased a product for Rs. 100 and sold it at a loss of 10%. Find the selling price.
Solution:
Loss = 10% of 100 = Rs. 10
Selling Price = CP - Loss = 100 - 10 = Rs. 90
Question 2 :
A product is marked at Rs. 1200. The shopkeeper offers a discount of 20% on it. Find the selling price.
Solution:
Discount = 20% of 1200 = Rs. 240
Selling Price = MP - Discount = 1200 - 240 = Rs. 960
Tips and Tricks related to this concept:
1. Profit Percentage: It's calculated on CP.
Profit % = (Profit / CP) × 100%
2. Loss Percentage: It's also calculated on CP.
Loss % = (Loss / CP) × 100%
3. Discount Percentage: It's calculated on MP.
Discount % = (Discount / MP) × 100%
4. If you're given both discount and profit/loss percentages, always find the discount first as it's calculated on MP, and then derive the SP to determine profit or loss.
5. A quick way to determine SP when given a discount or profit/loss percentage:
If 10% discount, SP = 0.9 MP
If 10% profit, SP = 1.1 CP
Remember, practice is the key when it comes to quantitative aptitude. Go through various questions related to this concept to familiarise yourself with different scenarios and application of formulas.
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