ABC26GN2686 · Profit and Loss

Subject: General Aptitude · Chapter: Profit and Loss · Exam: 2005 · Marks: · Difficulty:

A shopkeeper bought three varieties A, B and C of rice in different amounts at the rates of ` 34.50, ` 28.60 and ` 32.40 per kg respectively. In which of the following transactions will he gain maximum? )
(a)He bought 25 kg of rice of variety C and sold at ` 42 per kg and he bought 30 kg of variety A and sold at ` 38 per kg.
(b)He bought 40 kg of rice of variety B and sold at ` 37 per kg and he bought 20 kg of variety A and sold at ` 40 per kg.
(c)He bought 20 kg of rice of varieties A and C each and sold at ` 38 and ` 36 per kg respectively.
(d)He bought 30 kg of rice of variety A and sold at ` 37 per kg and he bought 20 kg of variety B and sold at ` 33 per kg.
(e)He bought 20 kg of rice of variety B and sold at ` 40 per kg and he bought 40 kg of variety C and sold at ` 38 per kg.
Answer
Answer (as printed): E
Explanation
(a) Profit = ` [{(42 – 32.40) × 25} + {(38 – 34.50) × 30}] = ` [(9.6 × 25) + (3.5 × 30)] = ` (240 + 105) = ` 345. (b) Profit = ` [{(37 – 28.60) × 40} + {(40 – 34.50) × 20}] = ` [(8.4 × 40) + (5.5 × 20)] = ` (336 + 110) = ` 446. (c) Profit = ` [{(38 – 34.50) × 20} + {(36 – 32.40) × 20}] = ` [(3.5 × 20) + (3.6 × 20)] = ` (70 + 72) = ` 142. (d) Profit = ` [{(37 – 34.50) × 30} + {(33 – 28.60) × 20}] = ` [(2.5 × 30) + (4.4 × 20)] = ` (75 + 88) = ` 163. (e) Profit = ` [{(40 – 28.60) × 20} + {(38 – 32.40) × 40}] = ` [(11.4 × 20) + (5.6 × 40)] = ` (228 + 224) = ` 452. Clearly, the shopkeeper gains the maximum in transaction (e).

Explanation as extracted from the printed page; notation may be imperfect.

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