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?
Worked answers
1. 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?
Answer: C: £600.00
- Items sold = 300 × 0.9 = 270.
- Revenue = 270 × £4.50 = £1215.00.
- Costs = 300 × £1.80 + £75 = £615.00.
- Profit = £600.00.
2. What is gross profit for B?
Answer: C: £720.00
- Gross profit share = 100% - 60% = 40%.
- 1800 × 0.40 = £720.00.
- Select £720.00.
Ready for the whole test? Sit the full free UCAT mock: 184 questions, marked by subtest.
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
Rises and falls: UCAT percentage change questions
Every QR question type: UCAT QR practice questions