Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 3 — Questions and Answers
Question 1: A retail outlet's monthly costs are: rent £3,500, wages £8,200, utilities £600, stock £12,000. Monthly revenue is £28,000. What is the monthly profit?
- £3,700 (Correct answer)
- £4,000
- £3,200
- £3,500
Correct answer: £3,700
Total costs = 3,500 + 8,200 + 600 + 12,000 = £24,300. Profit = £28,000 − £24,300 = £3,700.
Question 2: A product sells for £95. The cost to produce it is £57. What is the gross profit percentage (based on selling price)?
- 40% (Correct answer)
- 38%
- 42%
- 45%
Correct answer: 40%
Gross profit = £38. (38 ÷ 95) × 100 = 40%.
Question 3: A business paid £240,000 in wages. Wages represent 60% of total costs. What are the total costs?
- £400,000 (Correct answer)
- £360,000
- £420,000
- £440,000
Correct answer: £400,000
Total costs = £240,000 ÷ 0.60 = £400,000.
Question 4: Quarterly revenue: Q1 £110,000; Q2 £130,000; Q3 £95,000; Q4 £140,000. What is the average quarterly profit if total costs for the year were £360,000?
- £28,750 (Correct answer)
- £25,000
- £30,000
- £27,500
Correct answer: £28,750
Total revenue = £475,000. Annual profit = £475,000 − £360,000 = £115,000. Quarterly average = £115,000 ÷ 4 = £28,750.
Question 5: A company buys raw materials for £15 per unit and sells finished products for £25 per unit. After additional processing costs of £4 per unit, what is the profit per unit?
- £6 (Correct answer)
- £10
- £4
- £8
Correct answer: £6
Cost per unit = £15 + £4 = £19. Profit = £25 − £19 = £6.
Question 6: A department had a budget of £50,000 and overspent by 8%. What was the actual spend?
- £54,000 (Correct answer)
- £52,000
- £56,000
- £58,000
Correct answer: £54,000
8% of £50,000 = £4,000. Actual spend = £50,000 + £4,000 = £54,000.
Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 3
A retail outlet's monthly costs are: rent £3,500, wages £8,200, utilities £600, stock £12,000.
Monthly revenue is £28,000.
What is the monthly profit?