P & L : CP, SP, Ratios - XAT 2020 Sample Questions

The question is a sample practice problem in profit, loss, discounts, an Arithmetic Topic and the problem provides an understanding of the different terms such as Cost Price, List Price, Selling price and margins.

Question

One year payment to the servant is Rs. 200 plus one shirt. The servant leaves after 9 months and recieves Rs. 120 and a shirt. What is the price of the shirt?

1. Rs. 80
2. Rs. 100
3. Rs. 120
4. Cannot be determined

Correct Answer - Rs. 120. Choice (3)

Explanatory Answer

The servant worked for 9 months instead of 12 months, he should receive 9/12 of his annual payment

Let the price of 1 shirt be Rs.S.

i.e., .

However, the question states that the servant receive Rs. 120 + S where S is the price of the shirt.

By equating the two equations we get = 120 + S.

Therefore Price of the shirt S = Rs. 120.

Correct answer choice (3)