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.