Profit and Loss CAT Questions: Important Formulas, Topics, Expert's Tips to Prepare

By Aditi Joshi|Updated : November 16th, 2022

Profit and Loss Questions for CAT is an important chapter of the Arithmetic section that comes under the CAT QA. Profit and Loss CAT Questions is an important topic to be prepared, and the aspirants can see that the questions are totally based on the regular transactional activities of a person. The Profit and Loss Questions for CAT generally use terms like selling price, cost price, market price, loss, discount, and profit. So, a regular transactional-based concept is highly required to prepare for CAT Profit and Loss Questions.

To prepare Profit and Loss Questions for CAT, aspirants have to learn a number of formulae and concepts. Regular practice of these formulas and previous year's questions, along with mock tests will help the candidates to ace Profit and Loss CAT Questions. In this article, BYJU'S Exam Prep experts have given all the details related to Profit and Loss Questions for CAT, including the important formulas, concepts and many more.

What are CAT Profit and Loss Questions?

Profit and Loss is the concept that we have been studying since the school level. It is an important chapter of CAT Arithmetic Questions and deals with the basic concepts of loss, profit and its percentage related to daily transactional activities. Profit and Loss Questions for CAT analyse the candidate's basic mathematical skills related to transactional and financial calculation.

Considering the previous year's CAT Analysis, the candidates can expect 2-4 Profit and Loss Questions for CAT. Another important thing is that the candidates must learn shortcut tricks to solve CAT Profit and Loss Questions, as these questions are quite challenging and tend to have broader calculations. Note the section below to get basic details related to Profit and Loss CAT Questions.

Profit and Loss Questions for CAT: Important Concepts

Profit and Loss is an important topic asked in the CAT Exam. So before starting preparation, the candidates must be well-versed in all the important concepts of CAT Profit and Loss Questions.

  • Selling Price (S.P): It is the price at which the product is being sold
  • Cost Price (C.P): The price at which the product is purchased.
    • Fixed Cost: It is constant and does not change under any circumstances.
    • Variable Cost: It may vary based on the number of units and other related factors.
  • Profit is when the selling price is higher than the cost price (S.P > C.P).
  • Loss: When the selling price is lower than the cost price (S.P < C.P).
  • Market Price: This is basically labelled by shopkeepers to offer a discount to the customers.
    • Discount = Market Price - Selling Price
    • Discount Percentage = (Discount/Marked price) x 100

☛ See Also: CAT Syllabus

Important Profit and Loss CAT Formulas

Here, our experts have presented all the important formulas which are required to solve Profit and Loss Questions for CAT.

  • Profit =S.P- C.P
  • Loss= C.P- S.P
  • Profit % and Loss %: It is expressed as a profit and loss percentage of the cost price. The aspirants must follow the following two formulas to find this value.
    • Profit % =(Profit/C.P)*100
    • Loss % = (Loss/C.P)*100

Profit and Loss Questions for CAT: Formulae for Selling Price

Below listed formulas are very important to calculate the selling price in Profit and Loss CAT Questions

  • Selling price = Cost price + Profit
  • Selling price = Marked or List price – Discount
  • Selling price = (100+Profit)/100 × Cost price
  • Selling price = (100−Loss)/100 × Cost price

☛ See Also: CAT Registration

Profit and Loss Questions for CAT: Same Selling Price with Loss and Profit

Let two materials be sold at the same price so that one can earn a profit on one of those materials and incur a loss for the other. But the profit and loss percentage will be the same. In these types of cases, the selling prices are immaterial.

Suppose the same price is S, and the profit and loss percentage will be X% so that the formula will be

  • Loss %= (X/10)^2
  • Value of loss = 2S * x² / 100² - x²

Tricks to Remember Profit and Loss Questions for CAT

Answering the Profit and Loss CAT Questions is sometimes tricky, and the aspirants must have a grip on all the related formulae. Here are a few expert tips to remember:

  • Make a formula sheet for CAT Profit and Loss that must be revised every day.
  • Make shortcuts for all important highlighted notes related to profit and loss.
  • Practise previous years' questions to understand the difficulty level for each question of Profit and Loss Questions for CAT.
  • Do practice mental maths to improve your calculation skills.
  • Learn from mistakes and retry the questions again and again about what has been done wrong.

How to Prepare Profit and Loss CAT Questions?

Below are some expert-recommended tips to Prepare Profit and Loss Questions for CAT.

  • Do revise all the important formulas and concepts regularly.
  • Learn shortcut tricks to solve Profit and Loss Questions for CAT quickly and accurately.
  • Solve the previous year's CAT Question Paper to know the exam types and difficulty levels.
  • Maintain a notebook to write all the important formulas for Profit and Loss Questions for CAT and revise them in your free time.
  • Solve small problems to enhance your efficiency and calculation speed.

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FAQs on Profit and Loss Questions for CAT

  • Considering the expert analysis, Profit and Loss Questions for CAT deals with the questions related to daily transactions. It is completely based on the basic concepts of profit, loss, discount, etc.

  • The difficulty level of Profit and Loss questions for CAT is usually moderate. If the candidates prepare all the concepts related to these questions, they can easily solve them with 100% accuracy.

  • You can follow the below books to prepare Profit and Loss CAT Questions.

    • NCERT Mathematics Books (Class 6 to 10) by NCERT
    • How to Prepare for Quantitative Aptitude for the CAT by Arun Sharma
    • Quantitative Aptitude for CAT by Nishit Sinha
  • In order to Prepare Profit and Loss Questions for CAT, the candidates can follow the below tips.

    • Study all the concepts and formulas efficiently
    • Revise the questions in your free time
    • Solve previous year's questions in an exam like environment
    • Attempt weekly mock tests to check your preparation level
  • Yes, you can prepare for CAT Profit and Loss by self-study. Firstly, you must learn all the concepts and important topics related to this chapter. Practice related questions and check tour accuracy level.

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