CAT Exam historically tested Profit and loss in **every edition of CAT Exam**. With every passing year, **CAT Exam** has increased the importance of Arithmetic questions from topics such as Profit and Loss. Make use of **2IIMs Free CAT Questions**, provided with detailed solutions and Video explanations to obtain a wonderful CAT score.

Question 14 : A man buys 35 kg of sugar and sets a marked price in order to make a 20% profit. He sells 5 kg at this price, and 15 kg at a 10% discount. Accidentally, 3 kg of sugar is wasted. He sells the remaining sugar by raising the marked price by p percent so as to make an overall profit of 15%. Then p is nearest to

- 35
- 31
- 22
- 25

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Let the price of Sugar per kilogram be 'x' rupees.

The man marks it up by 20% and sells 5 kilograms.

Marked Price = 1.2 × x = 1.2x

Therefore, the sale price of these 5 kgs totally would be = 5 × 1.2 × x = 6x

He then gives a discount of 10% on the markup and sells 15 kgs at that price. So, the price per kg now would be 0.9 × 1.2 × x = 1.08x

Therefore, the sale price of these 15 kgs totally would be = 15 × 1.08x = 16.2x

He then looses 3 kgs of Sugar

Therefore, the sale price of these 3 kgs = 0.

There is 35 - 5 - 15 - 3 = 12 kgs of sugar remaining.

Let's say it is sold at px price.

So, the sale price of these 12 kgs will be = 12 × px

The overall profit for the Man is 15%, So the Sale Price of the entire 35 kgs is 35 × 1.15 × x = 40.25x

Summing up and equating all the sale prices...

40.25x = 6x + 16.2x + 0x + 12 × px

40.25x = 22.2x + 12 × px

18.05x = 12 × px

Let's approximate this to

18x = 12 × px p = \\frac{3}{2}) = 1.5

Very importantly, px is attained after marking up the marked price.

Therefore, px = y × Marked Price

1.5x = y × 1.2x

y = \\frac{5}{4}) = 1.25

In other words we can say that the marked price was increased by 25%.

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