Profit and Loss Question 2 - CAT 2024
Gopi marks a price on a product in order to make a 20% profit. Ravi gets a 10% discount on this marked price, and thus saves Rs. 15. Then, the profit, in rupees, made by Gopi by selling the product to Ravi, is:
Step-by-Step Explanation
Let the Cost Price (CP) of the product be X.
- Marked Price (MP): To make a 20% profit, Gopi marks the product at 1.2X.
- Discount and Savings: Ravi receives a 10% discount on this MP and saves Rs. 15.
Discount Value = 10% of 1.2X = 0.12X
0.12X = 15
X = 15 / 0.12 = 125
So, the Cost Price X = Rs. 125.
- Gopi's Actual Profit:
Actual SP = MP − Discount = 1.2X − 0.12X = 1.08X
Profit = SP − CP = 1.08X − X = 0.08X
Profit Value = 0.08 × 125 = Rs. 10
Correct Option: A
💡 FundaMakers Tip:
Avoid calculating the absolute value of X midway if you want to save time. Work entirely in units or percentages! Assume CP = 100. Then MP = 120. A 10% discount equals 12 units. You are given that 12 units = Rs. 15. The actual profit earned is SP − CP = 108 − 100 = 8 units.
Using unitary method: if 12 units = 15, then 8 units = (15 / 12) × 8 = 10. No heavy division required!