Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 1 — Questions and Answers
Question 1: A product costs £40 to produce and is sold for £52. What is the profit margin as a percentage of the selling price?
- 23.1% (Correct answer)
- 30%
- 25%
- 20%
Correct answer: 23.1%
Profit = £12. Profit margin = (12 ÷ 52) × 100 = 23.1%.
Question 2: A business made a profit of £18,000 last year. This year profits fell by 25%. What is this year's profit?
- £13,500 (Correct answer)
- £12,000
- £15,000
- £14,000
Correct answer: £13,500
25% of £18,000 = £4,500. This year's profit = £18,000 − £4,500 = £13,500.
Question 3: A shop buys goods for £600 and sells them for £720. What is the profit as a percentage of the cost price?
- 20% (Correct answer)
- 15%
- 25%
- 18%
Correct answer: 20%
Profit = £120. Percentage of cost = (120 ÷ 600) × 100 = 20%.
Question 4: Revenue is £85,000 and costs are £68,000. What is the profit as a percentage of revenue?
- 20% (Correct answer)
- 15%
- 25%
- 18%
Correct answer: 20%
Profit = £17,000. (17,000 ÷ 85,000) × 100 = 20%.
Question 5: A trader bought items for £2.50 each and sold them for £3.75 each. What is the percentage profit on cost?
- 50% (Correct answer)
- 40%
- 45%
- 33%
Correct answer: 50%
Profit = £1.25. (1.25 ÷ 2.50) × 100 = 50%.
Question 6: A company's total income is £500,000 and total expenditure is £425,000. What is the net profit?
- £75,000 (Correct answer)
- £70,000
- £80,000
- £65,000
Correct answer: £75,000
Net profit = £500,000 − £425,000 = £75,000.
Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 1
A product costs £40 to produce and is sold for £52.
What is the profit margin as a percentage of the selling price?