CAT 2017 Question Paper | Quants Slot 1

CAT Questions

Profit and loss has been historically tested in every edition of CAT. With every passing year, CAT exam has increased the importance of Arithmetic questions from topic such as Profit and loss. CAT exam has started featuring questions that are combination of multiple ideas in Arithmetic. This question links profit and loss with the concept of percentages.2IIM CAT Question Bank provides you with CAT previous year paper that can help you gear for CAT Exam.

Question 11 : In a market, the price of medium quality mangoes is half that of good mangoes. A shopkeeper buys 80 kg good mangoes and 40 kg medium quality mangoes from the market and then sells all these at a common price which is 10% less than the price at which he bought the good ones. His overall profit is:

1. 6%
2. 8%
3. 10%
4. 12%

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Video Explanation

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Explanatory Answer

Method of solving this CAT Question from Profit and Loss

The price of medium quality mangoes is half that of good mangoes. He buys 80 kg good mangoes and 40 kg medium quality mangoes from the market.
Then sells all these at a common price which is 10% less than the price at which he bought the good ones.
i.e. 40 + 80 = 120 kgs is sold at 1.8x.
His overall profit can be found as follows,
Cost price ⟹ 40x + 160x = 200x
Selling price ⟹ 120 × 1.8x = 216x
Hence there is 8% increase from cost price to selling price.
His overall profit was 8%.

The question is "In a market, the price of medium quality mangoes is half that of good mangoes. A shopkeeper buys 80 kg good mangoes and 40 kg medium quality mangoes from the market and then sells all these at a common price which is 10% less than the price at which he bought the good ones. His overall profit is:"

Hence, the answer is 8%

Choice B is the correct answer.