Dear Reader, Below are 3 sample profit-loss problems to practice for Wipro.

Question 1

Vijay, a shop owner was running a shop near IEFS Engineering College, Warangal. The shop is patronised by students, teachers, other staff members of the College besides to tourist public. One day Rehamana a tourist bought a new wrist watch from Vijay for Rs. 2480. Rehamana was not having sufficient money in cash and then issued a cheque for Rs.2800. Vijay paid the difference amount to Rehamana . Vijay gave the cheque to his cousin brother and took money from him. Vijay’s cousin found that there was no balance in the bank account of Rehamana and the cheque was returned unpaid. Vijay had to reimburse the cheque amount to his cousin and take back the cheque. The cost price of wrist watch was Rs. 2120. What is the gain or loss made by Vijay in this transaction?

a) Gain of Rs. 2440 b) loss of Rs. 2440 c) gain of Rs.5240 d) Loss of Rs. 5240

Answer : b) loss of Rs. 2440/.

Solution :

Transaction I (involving Vijay and Rehamana)
Rehamana gave a cheque for Rs. 2800 for the watch worth Rs. 2480. The difference amount = 2800 - 2480 = Rs. 320 was given by Vijay to Rehamana.

Transaction II (check realization by Vijay with the help of his brother)
Vijay when tried to realize the cheque, the cheque bounced. Though he got the money in advance from his brother, at the end, he had to return that money as cheque was not valid. Since he had returned the money that he got from his brother, his net gain or loss in transacton II (with his brother is 0).

Summing Up :
Total Loss To Vijay = Loss In Transaction I + Loss in Transaction II + Cost Price of Watch (as he has now given the watch to Rehamana which he cannot collect back)
= 320 + 0 + 2120
= Rs. 2440

Question 2

A leading seller of Vegetables in Koyambedu converted a loss of 20% into a profit of 25% when the selling price of potatoes was increased by Rs.225 per tonne. . Find the cost price of potato per tonne?

a) Rs.600 b) Rs. 800 c) Rs. 500 d) None of these.

Answer : c) Rs. 500

Solution :

Let the cost price per tonne = CP.
Initial Selling Price SP1 when he was making a loss of 20% = SP1 = 80% of CP = .8CP
Selling Price SP2 when he was making a profit of 25% = SP2 = 125% of CP = 1.25CP
Increase in selling price = SP2 - SP1 = 225
1.25 CP - 0.80 CP = 225
0.45CP = 225
CP = Rs. 500

Question 3

A toy vendor has four toys each costing Rs.100 with him. He plans to make an overall profit of 25% by spreading the profit equally across all the toys. There comes a buyer who wants three toys but at a discount of 5% on the SP. He accepts and sells three toys at a discount of 5% from the marked selling price. Now, if another buyer comes to his shop, by how much percentage the selling price needs to be increased from the cost price so that still he manages to make an overall profit of 25% with all 4 toys.

a) 43.25% b) 43.75% c) 43.55% d) 43.65%

Answer : b) 43.75%

Solution :

CP of each of the toys - Rs. 100.
According to his initial plan, he would had thought to sell each of the toys at Rs. 125 so that he would make a net profit of 25% by selling all the toys.
But the first buyer wants a discount of 5% on the selling price of Rs. 125.
Therefore, his discount per toy = 5/100 x 125 = Rs. 6.25.

Thus by selling three toys at a discount of Rs. 6.25 he would had lost 3 x 6.25 = 18.75.
Now he has to make up for this amount by increasing the selling price of the 4th toy. Therefore his new selling price on the 4th toy = Rs. 125 (his planned selling price) + 18.75 = 143.75
Therefore his new marked price 143.75 is greater than the cost price of Rs.100 by, (143.75 - 100) / 100 % = 43.75%.