Profit & Loss

Ram & Dave invested $100 each in a project. The project was bought for $400. What was total profit?

• 0

• $100

• $200

• $400

Answer explanation

As each of them contributed $100, the total investment was 2 x $100 = $200.

The project was sold for $400.

Hence, the profit = $400 - $200 = $200

Charles bought a cycle for $100 & sold it to Shyam for $100. What was Charle's profit?

• 0

• $100

• $200

• Can't be determined.

Answer explanation

Cost price: CP (the price at which Charles bought the cycle) = $100

Selling Price: SP (the price at which Charles sold it to Shyam) = $100

Profit = SP - CP

= $100 - $100 = 0

A cricket ball costs $48 per dozen. It is sold for $5 per piece. What is the profit made per ball?

• $2

• $1

• $43

• $12

Answer explanation

Cost of ball per dozen = $48

Cost Price (CP) of 1 ball

= $48/12 = $4

Selling Price (SP) of 1 ball

= $5

Profit per ball = SP - CP

= $5 - $ 4

= $1

Abdul & Ram opened a shop. The total investment was $10,000. The profit at the end of the year was $4000. What was the profit share of each?

• $1000

• $2000

• $4000

• $6000

Answer explanation

As we know that that there are two partners, the profit will be shared equally between two partners.

Total profit = $4000

Profit share of each

= $4000/2

= $2000

Ram, Jesus & Mohammad are 3 friends. They open a sandwich stand at a local football match. They invested $50 each & made $200 by selling all the sandwiches. What was their total profit?

• $150

• $100

• $50

• $250

Answer explanation

Total investment = 3 x $50 = $150

Total income = $200

Profit = Total Income - Total Investment

= $200 - $150 = $50

Mira made cookies by investing $100. Lucy used her cycle to sell all the cookies in the neighbourhood. The total income from the sales was $300. If they split profit equally, how much did each get?

• $50

• $150

• $100

• $200

Answer explanation

Though Mira invested $100 & prepared the cookies, Lucy helped her sell it.

Total profit = $300 - $100

= $200

As they split the profit equally.

The profit share

= $200/2

= $100

Laxman & Tom decided to modify a bike & then sell it. Laxman invested $1000, while Tom used his expertise to modify the bike. They decided to split the profit equally. What was the total profit if they sold the bike for $1500.

• $750

• $500

• $1250

• $250

Answer explanation

Total investment = $1000

Total income = $1500

Hence, total profit

= Total income - Total investment

=$1500 - $1000

=$500

Ayam, Donald, Rahi & Fatima invest $100 each and open a website where they put good thoughts everyday. The total income at the end of the year was $1000. What was the profit share of each investor?

• $900

• $300

• $600

• $150

Answer explanation

Number of investors = 4

Total Investment

= 4 x $100

= $400

Total Income

=$1000

Total Profit

= $1000 - $400

= $600

Profit share of each investor

= $600/4 = $150

Diljit bought a cycle for $50, sold it to Irfan for $40. Irfan sold it to Tom for $30. Tom sold it to laxmi for $20. Did anyone make any profit in the process of selling the cycle?

• No

• Yes

• Can't be determined

• Not sure

Answer explanation

As Selling Price (SP) in each case is less than the Cost Price (CP) no one made any profit .

(But even when no one made profit it makes sense to sell your old objects as someone else might use it)

Narendra opens a tea stall by the name of "PEACE TEA POINT" with four partners: Xi, Putin, Donald & Imran. Each invests $100 for the stall. Their total income at the end of the week was $500. What was the overall profit or loss?

• Profit of $100

• Loss of $100

• Can't be determined

• No proft, No loss

Answer explanation

Total number of partners : 5

Xi, Putin, Donald, Imran & Narendra.

Total Investment = 5 x $100 = $500

Total Income = $500

Total Investment - Total Income = $500 - $500 = 0

Hence, no profit, no loss.