Profit and Loss - 01

1. A bakery bakes cake with the expectation that it will earn a profit of 40% by selling each cake at marked price. But during the delivery to showroom 16% of the cakes were completely damaged and hence could not be sold. 24% of the cakes were slightly damaged and could be sold at 80% of the cost price. The remaining 60% of the cakes soled at marked price. What is the percentage profit in the whole transaction?  [IBPS PO, (19.10.2014)]

(1) 3.2         (2) 2.4         (3) 2.8        (4) 4.2         (5) 3.6

Soln. Let the cost price = Rs 100

The selling price of 24% of cakes is = 80% of Rs 24 = Rs 19.2

The selling price of 60% of cakes is = 140% of Rs 60 = Rs 84

Total SP = Rs 19.2 + Rs 84 = Rs103.2

Profit percent = 3.2% Ans.

[Detailed Explanation:  Let the cost price = Rs 100

Since 16% of cakes were damaged, so their SP = Rs 0

The CP of 24% of cakes is = Rs 24

The selling price of 24% of cakes is = 80% of Rs 24 = Rs 19.2

The CP of 60% of cakes is = Rs 60

But, this is sold at marked price, which is 40% above the CP

So, the selling price of 60% of cakes is = 140% of Rs 60 = Rs 84

Total SP = Rs 19.2 + Rs 84 = Rs103.2 and, CP = Rs 100

Profit percent = 103.2 – 100 = 3.2  So, Profit = 3.2% Ans.]