  # Profit and Loss CAT Questions: Important Formulae, Topics, Expert’s Tips to Prepare

By BYJU'S Exam Prep

Updated on: September 13th, 2023 As per previous year’s trends it has been seen that Arithmetic and Algebra hold 70% weightage in the CAT exam. Profit and Loss is an important topic under the QA section of the CAT exam and is a part of the Arithmetic section. To prepare Profit and Loss Questions for CAT, aspirants have to learn a few formulae. Regular practice of these formulae and previous year’s questions, along with mock tests will help the candidates to ace Profit and Loss CAT Questions. In order to practice Profit & Loss CAT questions the candidates must Download the BYJU’S Exam Prep App NOW and visit the Practice section. Check the below article, to know all the details related to Profit and Loss Questions for CAT, including the important formulae, concepts and many more.

As per previous year’s trends it has been seen that Arithmetic and Algebra hold 70% weightage in the CAT exam. Profit and Loss is an important topic under the QA section of the CAT exam and is a part of the Arithmetic section. To prepare Profit and Loss Questions for CAT, aspirants have to learn a few formulae. Regular practice of these formulae and previous year’s questions, along with mock tests will help the candidates to ace Profit and Loss CAT Questions. In order to practice Profit & Loss CAT questions the candidates must Download the BYJU’S Exam Prep App NOW and visit the Practice section. Check the below article, to know all the details related to Profit and Loss Questions for CAT, including the important formulae, concepts and many more.

## What are CAT Profit and Loss Questions?

Profit and Loss is a school level concept. 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

## Important Profit and Loss CAT Formulae

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

### 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

In order to solve Profit & Loss CAT Questions the aspirants must have a grip on all the related formulae. Here are a few expert tips to remember:

• Make a formulae 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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