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Profit and Loss Statements

CMAT 2023 · Quantitative Techniques & Data Interpretation · Easy · Profit and Loss

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Given below are two statements:

Statement I: The difference between the cost price and sale price of an article is ₹ 240. If the profit is 20%, then the selling price is ₹ 1440.

Statement II: If the cost price of 10 DVDs is equal to the selling price of 7 DVDs, then the gain percent is 4267%42\frac{6}{7}\%.

In the light of the above statements, choose the most appropriate answer from the options given below:

  1. A.

    Both Statement I and Statement II are correct

  2. B.

    Both Statement I and Statement II are incorrect

  3. C.

    Statement I is correct but Statement II is incorrect

  4. D.

    Statement I is incorrect but Statemenent II is correct

Answer

A

Explanation

Statement I: Profit =SP−CP=240= \text{SP} - \text{CP} = 240. Since Profit is 20%20\%, 20% of CP=240⇒CP=120020\% \text{ of } \text{CP} = 240 \Rightarrow \text{CP} = 1200. SP=CP+Profit=1200+240=1440\text{SP} = \text{CP} + \text{Profit} = 1200 + 240 = 1440. Correct.

Statement II: 10×CP=7×SP⇒SPCP=10710 \times \text{CP} = 7 \times \text{SP} \Rightarrow \frac{\text{SP}}{\text{CP}} = \frac{10}{7}. Gain Percentage =10−77×100=3007%=4267%= \frac{10 - 7}{7} \times 100 = \frac{300}{7}\% = 42\frac{6}{7}\%. Correct.

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