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Profit & Loss
Profit and loss, often seen as the financial seesaw of business, hold the secrets to your CAT exam success. At Quantifiers, we’re here to simplify the world of profit and loss, making it not just understandable but also an exciting journey towards financial acumen. Join us as we explore the fascinating dynamics of profits and losses and discover how they can become your formula for mastering the CAT exam!
Understanding Profit & Loss
Before we dive into the specifics of profit and loss in the CAT exam, let’s embark on a journey to unravel the profit and loss puzzle. Profit and loss is like the financial storybook of business, where gains and setbacks are accounted for. It’s the science of understanding financial outcomes and making decisions to boost profitability.
Here’s why it’s an essential topic to grasp:
Data Interpretation: Many data interpretation problems involve profit and loss scenarios. You’ll need to analyze financial data and make calculations to make informed decisions.
Logical Reasoning: Profit and loss concepts can pop up in logical reasoning questions, where you’ll assess the financial implications of given situations and make logical conclusions.
Problem Solving: Understanding profit and loss is crucial for solving various CAT questions, especially those related to data interpretation and business scenarios.
Understanding profit and loss isn’t just about acing the CAT exam; it’s about enhancing your financial literacy, problem-solving skills, and the ability to make informed decisions in various aspects of life. So, don’t let profit and loss calculations remain a financial puzzle; let them become your financial compass on your journey to mastering the CAT exam.
Practice Questions for CAT with Solutions
1. CAT - Profit & Loss
Ramu mixes 2 litres of mineral water costing Rs. 15 per litre with 18 litres of milk that he bought for Rs. 900. After selling 2 litres of this mixture to Shamu, Ramu adds tap water so that the ratio of milk to tap water is 9:10. If tap water is free and Ramu claims to sell at cost price of milk, what is his profit%?
2. CAT - Profit & Loss
A shopkeeper buys 120 litre petrol at Rs. 35 per litre and then mixes some kerosene which costs him Rs. 24 per litre. He sells this mixture at Rs. 36/litre but manipulates the meter such that it shows 1 litre when it is actually 0.96 litre. What quantity of kerosene does he mix with petrol if he earns a profit of 25% in all?
5. CAT - Profit & Loss
A person buys tea of three different qualities at Rs. 800, Rs. 500, and Rs. 300 per kg, respectively, and the amounts bought are in the proportion 2 : 3 : 5. She mixes all the tea and sells one-sixth of the mixture at Rs. 700 per kg. The price, in INR per kg, at which she should sell the remaining tea, to make an overall profit of 50%, is
1. 688
2. 675
3. 653
4. 692
6. CAT - Profit & Loss
Raj invested Rs.10000 in a fund. At the end of first year, he incurred a loss but his balance was more than Rs. 5000. This balance, when invested for another year, grew and the percentage of growth in the second year was five times the percentage of loss in the first year. If the gain of Raj from the initial investment over the two year period is 35%, then the percentage of loss in the first year is:
1. 10
2. 15
3. 70
4. 5
7. CAT - Profit & Loss
A man buys 35 kg of sugar and sets a marked price in order to make a 20% profit. He sells 5 kg at this price, and 15 kg at a 10% discount. Accidentally, 3 kg of sugar is wasted. He sells the remaining sugar by raising the marked price by p percent so as to make an overall profit of 15%. Then p is nearest to
1. 25
2. 22
3. 31
4. 35
