Profit Loss and Discount
Shabnam is considering three alternatives to invest her surplus cash for a week. She wishes to guarantee maximum returns on her investment. She has three options, each of which can be utilized fully or partially in conjunction with others.
Option A : Invest in a public sector bank. It promises a return of +0.10%.
Option B : Invest in mutual funds of ABC Ltd. A rise in the stock market will result in a return of + 5% while a fall will entail a return of –3%.
Option C: Invest in mutual funds of CBA Ltd. A rise in the stock market will result in a return of –2.5%, while a fall will entail a return of +2%.
The maximum guaranteed return to Shabnam is
Answer the following question based on the information given below:
Shabnam is considering three alternatives to invest her surplus cash for a week. She wishes to guarantee maximum returns on her investment. She has three options, each of which can be utilized fully or partially in conjunction with others.
Option A : Invest in a public sector bank. It promises a return of +0.10%.
Option B : Invest in mutual funds of ABC Ltd. A rise in the stock market will result in a return of + 5% while a fall will entail a return of –3%.
Option C: Invest in mutual funds of CBA Ltd. A rise in the stock market will result in a return of –2.5%, while a fall will entail a return of +2%.
What strategy will maximize the guaranteed return to Shabnam?
Directions for Questions 19 and 20: Answer the following questions based on the information given below:
Mr. David manufactures and sells a single product at a fixed price in a niche market. The selling price of each unit is Rs. 30. On the other hand, the cost, in rupees, of producing ‘x’ units is 240 + bx + cx2, where ‘b’ and ‘c’ are some constants. Mr. David noticed that doubling the daily production from 20 to 40 units increases the daily production cost by 
. However, an increase in daily production from 40 to 60 units results in an increase of only 50% in the daily production cost. Assume that demand is unlimited and that Mr. David can sell as much as he can produce. His objective is to maximize the profit.
How many units should Mr. David produce daily?
Directions for Questions 19 and 20: Answer the following questions based on the information given below:
Mr. David manufactures and sells a single product at a fixed price in a niche market. The selling price of each unit is Rs. 30. On the other hand, the cost, in rupees, of producing ‘x’ units is 240 + bx + cx2, where ‘b’ and ‘c’ are some constants. Mr. David noticed that doubling the daily production from 20 to 40 units increases the daily production cost by . However, an increase in daily production from 40 to 60 units results in an increase of only 50% in the daily production cost. Assume that demand is unlimited and that Mr. David can sell as much as he can produce. His objective is to maximize the profit.
What is the maximum daily profit, in rupees, that Mr. David can realize from his business?
A man buys spirit at Rs. 60 per litre, adds water to it and then sells it at Rs. 75 per litre. What is the ratio of spirit to water if his profit in the deal is 37.5%?
A dealer offers a cash discount of 20% and still makes a profit of 20%, when he further allows 16 articles to a dozen to a particularly sticky bargainer. How much percent above the cost price were his wares listed?
Direction for questions 58 to 87: Answer the questions independently.
A stockist wants to make some profit by selling sugar. He contemplates about various methods. Which
of the following would maximise his profit?
I. Sell sugar at 10% profit.
II. Use 900 g of weight instead of 1 kg.
III. Mix 10% impurities in sugar and selling sugar at cost price.
IV. Increase the price by 5% and reduce weights by 5%.
Instead of a metre scale, a cloth merchant uses a 120 cm scale while buying, but uses an 80 cm scale while selling the same cloth. If he offers a discount of 20% on cash payment, what is his overall profit percentage?
I sold two watches for Rs. 300 each, one at the loss of 10% and the other at the profit of 10%. What is the percentage of loss() or profit(+) that resulted from the transaction?
A leather factory produces two kinds of bags, standard and deluxe. The profit margin is Rs. 20 on a
standard bag and Rs. 30 on a deluxe bag. Every bag must be processed on machine A and on
Machine B. The processing times per bag on the two machines are as follows:
The total time available on machine A is 700 hours and on machine B is 1250 hours. Among the following production plans, which one meets the machine availability constraints and maximizes the profit?
number of deluxe bags.
Thus, 4x + 5y ≤ 700 and 6x + 10y ≤ 1250
Among the choices, (3) and (4) do not satisfy the
second equation.
Choice (2) is eliminated as, in order to maximize profits
the number of deluxe bags should be higher than the
number of standard bags because the profit margin is
higher in a deluxe bag.
There are 12 towns grouped into four zones with three towns per zone. It is intended to connect the towns with a telephone lines such that every two towns are connected with three direct lines if they belong to the same zone, and with only one direct line otherwise. How many direct telephone lines are required?
For the maximum profit, the number of colour TVs and VCRs that he should respectively stock are
If the dealer would have managed to get an additional space to stock 20 more items, then for maximizing profit, the ratio of number of VCRs and number of TVs that he should stock is
The maximum profit, in rupees lakh, the dealer can earn from his original stock if he can sell a colour TV at Rs. 12200 and VCR at Rs.18300 is
number of deluxe bags.
Thus, 4x + 5y ≤ 700 and 6x + 10y ≤ 1250
Among the choices, (3) and (4) do not satisfy the
second equation.
Choice (2) is eliminated as, in order to maximize profits
the number of deluxe bags should be higher than the
number of standard bags because the profit margin is
higher in a deluxe bag.
