CAT Quantitative Ability Questions | CAT Percentage, Profit & Loss questions
Comprehension
Directions for questions: Read the information given below and answer the questions that follow :
A watch dealer incurs an expense of Rs 150 for producing every watch. He also incurs an additional expenditure of Rs30, 000, which is independent of the number of watches produced. If he is able to sell a watch during the season, he sells it for Rs 250. If he fails to do so, he has to sell each watch for Rs 100.
CAT/1996
Question . 95
If he is able to sell only 1200 out of the 1500 watches he has made in the season, then in the season he has made a profit of
Explanatory Answer
Method of solving this CAT Quantitative Ability Question from Percentage, Profit & Loss question
Let watch dealer makes x watches then
Total cost price = 30,000 + 150x
Selling price of per watch = 250 in season or S = 100 otherwise
CP = 30,000 + 2,25,000 = 2,55,000
SP = 1200 × 250 + 300 × 100 = 3,30,000
Profit = 3,30,000 – 2,55,000 = Rs 75000
option (b)