Aptitude - Profit and Loss - Discussion

Each of the questions given below consists of a question followed by three statements. You have to study the question and the statements and decide which of the statement(s) is/are necessary to answer the question.

1. 

By selling an article what is the profit percent gained?

I. 

5% discount is given on list price.

II. 

If discount is not given, 20% profit is gained.

 III. 

The cost price of the articles is Rs. 5000.

[A]. Only I and II
[B]. Only II and III
[C]. Only I and III
[D]. All I, II and III
[E]. None of these

Answer: Option A

Explanation:

 I. Let the list price be Rs. x.

Then, S.P. = 95% of Rs. x = Rs. x x 95 = Rs. 19x
100 20

II. When S.P. = Rs. x and gain = 20%.

Then, C.P. = Rs. 100 x x = Rs. 5x
120 6

Gain = 19x - 5x = 57x - 50x = 7x
20 6 60 60

Gain % = 7x x 6 x 100 % = 14%.
60 5x

Thus, I and II only give the answer.

Correct answer is (A).


Prasu said: (Aug 27, 2011)  
How do you get the cost price?

Raj said: (Jan 30, 2012)  
In given explanation,

I-> x is list price
II-> x is selling price

So how did you equte them?

Mani Soni said: (Feb 26, 2012)  
@Prasu :-

Cost Price = [ (100)/(100+gain%)]* Selling price

= [100/120]x

Kaustubh said: (May 14, 2012)  
How to get the equation?

Iamateur said: (Feb 8, 2013)  
What is the meaning of list price in the question?

Sudarshan Yadav said: (Sep 24, 2013)  
After giving 5% discount on list price,
sp=x-5*x/100=19x/20.

In 2nd case no discount is given that means marked price = sp.
So sp = x.

Again to gain 20% cp should be,
cp = 100*x/(100+20) = 0.833x.

Now to find profit take sp of when this is given so,

Profit = (sp-cp)*100/cp = (0.95-0.833) *100/0.833 = 14%.

So statement 1 and 2 are only needed to answer.

Trouble said: (Nov 19, 2014)  
But why not third statement is true like.

cp = (100/100*gain%)*sp from third statement.

Where we know,

sp = 120% of cp from statement 2nd.

So we can say,

cp = (100/100+gain%)*120% of cp which 100 + gain% = 120.

Gain% = 20.

Sasi said: (Aug 3, 2015)  
Why not third statement is true please explain?

Puneet said: (Sep 16, 2015)  
Why not 2 and 3 true please explain?

Sandy said: (Mar 10, 2016)  
In the question, Actually we want to find the profit %, if an article was sold by giving 5% discount on the list price.

List price is differ from cost price.

For Eg: If a mobile store bought a mobile for 5000rs from manufacturer company, but MRP printed on the mobile would be 7000Rs. They will sold the mobile by giving 5% discount on the MRP.

So MRP--> list price.

Sol:

Assume List price = MRP = Rs X.

if he sold by giving discount 5%,
then S.P = (100-5)% of X.
= 95% X.
S.P = 19/20 X.

So if he sell an article for rs (19/20)X, what would be the profit he gained? is the question.

To find the profit, we need Cost price of the article.

Here we can't take the CP from the 3rd sentence as Rs. 5000, because from this we cant able to find the profit.

Profit = (19/20)X-5000 = unpredictable.

So we want to go with the 2nd sentence.

If in a case, if the seller sell the article without giving any discount on the list price(MRP) and he will get 20% gain more than the cost price.

Then S.P = MRP = Rs X.

Since he got 20% gain more than the cost price.

S.P = 1.2 C.P.

=> C.P = Rs (5/6)S.P = Rs (5/6)X.

Which gives the actual cost price of the article.

Profit = S.P - C.P.
= (19/20)X - (5/6)X.
= (7/60)X.

Gain % = (Profit/C.P)*100.
= 14% (by solving).

So 1st and 2nd sentences gives us the answer.

We can't take 2 and 3, because it gives the same profit % as 20% which is not our answer.

And even though we want calculate the profit % by taking the 1st sentence because that is the question.

Femi Philip said: (Mar 10, 2016)  
The solution and explanation is awesome. Even kinder-garden kids could able to understand ;-P.

Zahana said: (Mar 10, 2016)  
Ok. Then you are mean to say MRP is nothing but the list price. Am I right?

Santhiya said: (Mar 11, 2016)  
@Sandy very much thanks. I'm more confused. Now my mind is happy with the solution.

Sandy said: (Mar 11, 2016)  
Yes, Exactly Zahana. MRP is nothing but the list price.

Ravi Kotecha said: (Aug 6, 2016)  
Here we assuming initial gain of 100% and then we are taking increased gain of 120%. But if we will take any unknown gain of R%, then all statement must required.

Mant said: (Sep 18, 2016)  
sp = 120percent of 5000 = 6000.

Gain = (6000 - 5000) * 100/5000 = 20percent.

Satya said: (Sep 22, 2016)  
What is the difference between selling price and cost price?

Sonika Singh said: (Oct 15, 2016)  
List price and cost price are two different terms.

List price is we can say what is written on the product whereas cost price is at what price it is given to the customer. So don't get confused with both the terms. This will make you understand the question easily.

Athul Krishna said: (Oct 20, 2016)  
Why can't II and III find?

Cost price = 5000;
SP = 120% 5000 = 6000.

Anonymous said: (Jun 29, 2018)  
Why can't I and III?

Arpan Das said: (Sep 7, 2019)  
Why II & III couldn't be the answer?

C.P=5000;then if 20% profit is gained the profit amount will be = 1000,
Then by the formula, Gain%=(Gain*100)/C.P.

Cherry said: (Aug 4, 2020)  
@Sandy.

Thanks for explaining the solution.

Jey Shreemen G.R. said: (Oct 25, 2020)  
@Sandy.

Thanks for your explanation.

Sudhanshu said: (Dec 26, 2020)  
I think we can also come to a solution using II and III;
CP = 5000.
SP = 120%(CP) = 6000.
Thus profit = 1000 and profit% = 20%.

Saurav said: (Jan 10, 2021)  
Why not II and III? Please explain.

Cubie said: (May 15, 2021)  
S.P = (100-5)% of X.
95%of X (X= MRP).
How we can write: S.P = (100-5)% of X? Explain, please.

Abhijeet Raghuwanshi said: (Aug 30, 2021)  
I want to say that if we take 2nd statement only.

Let the selling price be x.
Gain percentage =20% (given in 2nd statment).
Gain percentage= ( (sp-cp) /cp) *100.
Therefore 20= ( (x-cp) /cp) *100.
Which gives cp= (5/6) *x.
Profit percentage = ( (sp-cp) /cp) *100.
Profit percentage= ( (x- (5/6) x) / (5/6) x) *100.
Profit percentage=20% approximately.

Am I right? Correct me If I am wrong.

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