UCAT profit and loss questions
Profit = revenue − total costs. Count every cost the question gives: fixed charges, wasted or rejected stock, delivery. Revenue comes only from what is sold. Try two below.
Quantitative Reasoning · Question 1 of 20:00 / 0:43
A business makes 300 items at a cost of £1.80 each. It rejects 10% of them and sells every remaining item for £4.50. It also pays a fixed £75 charge. What is its profit?
The words QR uses
| Term | Means |
|---|---|
| Revenue | Price × units sold |
| Profit | Revenue − all costs |
| Margin | Profit ÷ revenue × 100 |
| Mark-up | Profit ÷ cost × 100 |
Margin and mark-up differ: £25 profit on a £75 cost is a 33.3% mark-up but a 25% margin.
Keep going
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