Profit and Loss Formula & Questions For GMAT

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Profit and Loss Formula

Do you aspire to study abroad? If yes, then you must be trying your best to hit bull’s eye in the GMAT exam. Graduate Management Aptitude Test (GMAT) is a prestigious test which one has to qualify in order to opt for overseas education in the Management domain. Being one of the most reputable competitive exams, GMAT assess the applicants through sections like Logical Reasoning, Quantitative Aptitude, English Language etc. If you are appearing for the GMAT exam this year, here is a blog to help you with some profit and loss formulas and questions to practice.  

List of Profit & Loss Formula

Let us look at some important profit and loss formulas top get a better hold of the concept:

Gain = SP- CP 

Loss = CP- SP

Gain% = (Gain/ CP)x 100

Loss% = (Loss/ CP)x 100

SP= [(100+ Gain%)/ 100]x CP

SP= [(100- Loss%)/ 100]x CP 

CP= [100/ (100+ Gain%)]x SP

CP= [100/ (100- Loss%)]x SP

Also Read: Sequence and Series

Profit & Loss: Solved Examples

Now that you are clear with profit and loss formulas, below mentioned are some solved examples which will help you understand the topic better.

Example 1: Sunita bought 10 shirts for Rs.40 and sold 8 of them at Rs. 35. Calculator gain or loss %. 

Solution:

CP of 10 toys= Rs. 40 
CP of 1 toy= Rs. 4
SP of 8 toys= Rs. 35 
SP of 1 toy= Rs. 35/8
Therefore, Gain =35/8 – 4 = ⅜
Gain percent= (3/8)/4 x 100= 9.375% 

Have a look at our blog on Sample Questions for GMAT 2021

Example 2:  A merchant sells his goods using weights 15% less than true weights and makes a profit of 20%. Find his total gain %. 

Solution:

 Let us consider 1 kg of goods bag. Its actual weight is 85% of 1000gm= 850gm 
Let the cost price of each gram be Re. 1. Then the CP of each good bag= Rs. 850
SP of 1 kg bag= 120% of the true CP 

Therefore, SP 120/100 x 1000 = Rs. 1200
Gain = 1200- 850= 350
Gain %= 350/850 x 100= 41.17 %

Example 3: Riya sold a pen at a 12% profit. On selling it for Rs 18 more she would get a profit of 18%. What is the CP of the pen?

Solution:

SP = CP [1 + (Gain % x 100)]
Firstly 
SP= CP (1 + 0.12) = 1.12 CP 
Secondly
SP= CP (1 + 0.18)= 1.18 CP
So the difference between first and second cases is Rs. 18 (given)

Therefore, 
1.18 CP  – 1.12 CP = 18
0.06 CP = 18
CP = 18/0.06
CP= 300
The cost price of pen is Rs. 300

Check out: Arithmetic Questions for GMAT Quantitative Reasoning Section

Example 4: My mother bought two dresses for Rs. 2500 each. If she sells one at a profit of 5%, then at what price she should sell the other the dress to make a profit of  20% on the whole.

Solution:

Let the other profit % be x  
Then, the equation becomes 
105/100 x 2500 + [(100+ x)/ 100]x 2500= 120/100 x 5000 
x= 35
Hence, if she makes a profit of 35% on the second dress, it comes to a total of 20% profit on the whole.

You cannot miss: Maths Tricks to Ace GMAT Quant Section

Practise Time!

After these examples, now let us check how much you have grasped the profit and loss formulas by solving the below-mentioned questions on your own.

  1. In a certain mart, the profit is 320% of the total cost. If the cost increases by 25% but the SP remains constant, approximately what percentage of the selling price is profit?
  2. If the selling price is doubled, the profit triples. Find the profit per cent 
  3. Himanshu bought 6 pencils for a rupee. How many for a rupee he must sell to gain 20% profit?
  4. A manufacturer sells a table for Rs. 2400 and made a profit of 25% in the process. Find his total profit percent if he had sold his good for Rs. 2040.
  5. While selling 10 mangoes, a fruitseller incurred loss equal to the cost price of 3 mangoes. Find the loss percent. 

Thus, we hope that this blog on profit and loss formulas helped you gain insight into the concept. Do you aspire to study abroad but are clueless about how to proceed? Reach out to Leverage Edu and we will help you get started on the right career path.

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