Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 3

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?

Accepted Answer

£3,700

Answer

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)?

Accepted Answer

40%

Answer

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?

Accepted Answer

£400,000

Answer

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?

Accepted Answer

£28,750

Answer

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?

Accepted Answer

£6

Answer

Cost per unit = £15 + £4 = £19. Profit = £25 − £19 = £6.

Civil Service Numerical Reasoning Practice Test

Civil Service Numerical Reasoning Practice Test

Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 3