Profit & Loss Question Answers

P & L : CP, SP, Ratios - CAT 2007

Question 4 the day : May 12, 2003
The question for the day is a sample practice problem in profit, loss, discounts, an Arithmetic Topic and the problem provides an understanding of the different terms such as Cost Price, List Price, Selling price and margins.

Question
One year payment to the servant is Rs. 200 plus one shirt. The servant leaves after 9 months and recieves Rs. 120 and a shirt. Then find the price of the shirt.

1. Rs. 80
2. Rs. 100
3. Rs. 120
4. Cannot be determined

Correct Answer - Rs. 120. Choice (3)

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Explanatory Answer

The servant worked for 9 months instead of 12 months, he should receive 9/12 of his annual payment

i.e., � (200 + 1S).

However, the question states that the servant receive Rs. 120 + 1S where S is the price of the shirt.
By equating the two equations we get � (200 + S) = 120 + S.

Therefore Price of the shirt S = Rs. 120.