Profit, Loss and Financial Calculations Flashcards
6 cards from real Civil Service Numerical Reasoning Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Profit, Loss and Financial Calculations flashcards as text
A company's revenue grew from £1.2m to £1.44m. Costs rose from £900,000 to £1,080,000. What happened to profit?
Answer: Profit stayed the same at £300,000
Old profit = £1.2m − £0.9m = £300,000. New profit = £1.44m − £1.08m = £360,000. Profit increased.
A salesperson earns a base salary of £18,000 plus 5% commission on sales over £80,000. If they sell £120,000 worth of goods, what is their total earnings?
Answer: £20,000
Commission earned on £40,000 (sales above £80,000) = 5% × £40,000 = £2,000. Total = £18,000 + £2,000 = £20,000.
A store buys 200 items at £4.50 each and sells 180 of them at £7.00 each. What is the overall profit?
Answer: £360
Cost = 200 × £4.50 = £900. Revenue = 180 × £7.00 = £1,260. Profit = £1,260 − £900 = £360.
Operating costs are £320,000 per year. Monthly revenue averages £35,000. What is the annual profit or loss?
Answer: £100,000 profit
Annual revenue = £35,000 × 12 = £420,000. Profit = £420,000 − £320,000 = £100,000.
A product costs £180 to make. To achieve a 25% profit margin based on selling price, at what price should it be sold?
Answer: £240
If profit margin = 25%, then cost = 75% of selling price. Selling price = £180 ÷ 0.75 = £240.
A business had revenues of £350,000 and expenses of £280,000 in Year 1. In Year 2, revenues increased by 10% and expenses by 5%. What is Year 2's profit?
Answer: £91,000
Year 2 revenue = £350,000 × 1.10 = £385,000. Year 2 expenses = £280,000 × 1.05 = £294,000. Profit = £385,000 − £294,000 = £91,000.