GMAT Book 3: Profits

You could get one or two questions from Profit and Loss in the GMAT quant section - in both variants viz., problem solving and data sufficiency.

Syllabus Covered in Wizako's GMAT Book | Profits

Profit and Loss is one of the easy concepts in GMAT Math. Basic concepts, formulae are covered and are followed by examples and exercise problems. Wizako's GMAT Math Lesson Book in this chapter covers the following concepts:

1. The Chapter begins with the explanation of the meaning of cost price and selling price.
2. The meaning of the terms profit and loss is explained and the relationship between profit, loss, cost price and selling price is given.
3. Expressing profit and loss as a percentage of cost price.
4. Converting percentages of profit or loss expressed in terms of selling price to percentages of cost price.
5. Explanation of the meaning of the terms marked price (retail price) and discount and the relationship between selling price, marked price, and discount.
6. 4 Illustrative examples to grasp the concept with ease.
7. 25 solved examples with detailed explanations, a few highlighting applicable shortcuts.
8. 37 exercise problems with answer key and explanatory answers.
9. An objective type test with 35 GMAT level multiple choice questions in the work book. Answer key and explanatory answers are provided for all questions.

Here is a typical solved example in Wizako's GMAT Book from this chapter

Sample Question

The cost price of 40 articles is equal to the selling price of 35 articles. What is the profit /loss percentage made by the trader?

Explanatory Answer

Let the cost price of one article be $1. So, the cost price of 40 articles is $40

The question states that the selling price of 35 articles = cost price of 40 articles
So, the selling price of 35 articles = $40

Let us compute the cost price for 35 articles.
If the cost of 1 article = $1, the cost price of 35 articles = $35

Therefore, the profit/loss made on 35 articles = S.P of 35 articles - C.P of 35 articles
i.e., $40 - $35= $5, or a profit of $5

% Profit = \\frac{\text{profit}}{\text{cost price}}) × 100

\\frac{5}{35}) × 100 = 14.28% profit

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