CAT Profit and Loss Questions with Solutions; Free PDF Download

1.A dealer allows a discount of 10% to his customers and still earns a profit of 26%. Find the cost price (in Rs.) to him of an article marked at Rs. 560.

(a) 356

(b) 400

(c) 504

(d) 432

2. In what proportion must a chemist mix two solutions of a certain chemical, which cost him Rs 18 and Rs. 27 a gallon respectively, so that by selling the mixture at Rs 30 a gallon, he may gain 25% on his outlay?

(a) 2:3

(b) 2:1

(c) 1:2

(d) 3:2

3. Akash buys candies at 20 candies for Rs. 100 and sells it at a loss of as much money as Akash paid for five candies. Find the SP per candies?

(a) Rs. 4

(b) Rs. 3.5

(c) Rs. 3.75

(d) Rs. 4.5

4. Vansh and Amrit started a business together where Vansh was the active member and Amrit was just an investor or passive partner. Vansh invested Rs. 10 lacs in the business while Amrit, who joined the business 3 months later, invested Rs. 20 lacs. As Vansh was the active member, he also drew a salary of Rs. 25000 every month. At the end of the year, they made Rs. 10 lac as profit. Find the ratio of Vansh's share to that of Amrit. (Note: Profits are distributed after the salary is taken into account)

(a) 21 : 29

(b) 29 : 21

(c) 19 : 6

(d) 12:16

When preparing for the CAT Profit and Loss topic of CAT, aspirants must ensure they have complete clarity of the following concepts:

• Cost Price: The actual price at which an item is purchased/or expense incurred
• Selling Price: The price at which an item is actually sold
• Marked Price: The price at which an item is marked for sale
• Gain: The difference between selling price and cost price wherein, selling price is higher
• Loss: The difference between cost price and selling price wherein, cost price is higher
• Discount: Rebate offered on product listed for sale

Check the below table for the number of questions asked in the last few years of this topic.

Here are some of the fundamental yet most important CAT Profit and Loss Fornulae:

Profit: SP - CP (when Selling Price > Cost Price)

Loss: CP - SP (when Cost Price > Selling Price)

Profit %: (Profit / CP) × 100

Loss %: (Loss / CP) × 100

*For advance level CAT Profit and Loss Fornulae check the downloadable PDF shared above.

There are three main tips for preparation for CAT Profit and Loss questions. Since the topic is on the easier side and the questions asked are mostly straightforward, you need to:

• Be thorough with the formulae
• Practice a good number of sample questions
• Learn successive percentage changes, and practice false weight questions.

*Refer the downloadable PDF given above for detailed assistance.

Check here Frequently Asked Questions on CAT Profit and Loss: