Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 4 — Questions and Answers
Question 1: A shop sells an item for £180 which was bought for £120. What is the percentage mark-up?
- 50% (Correct answer)
- 40%
- 45%
- 60%
Correct answer: 50%
Profit = £60. Mark-up on cost = (60 ÷ 120) × 100 = 50%.
Question 2: An employee's tax bill is 20% on income above £12,570. Their income is £28,570. How much tax do they pay?
- £3,200 (Correct answer)
- £4,000
- £5,714
- £2,800
Correct answer: £3,200
Taxable income = £28,570 − £12,570 = £16,000. Tax = 20% of £16,000 = £3,200.
Question 3: A project had a budget of £200,000. Actual costs were £185,000. By what percentage was it under budget?
- 7.5% (Correct answer)
- 8%
- 6%
- 10%
Correct answer: 7.5%
Saving = £15,000. (15,000 ÷ 200,000) × 100 = 7.5%.
Question 4: A business earns £2,400 per day. How much does it earn in a 5-day working week?
- £12,000 (Correct answer)
- £10,000
- £14,000
- £9,600
Correct answer: £12,000
£2,400 × 5 = £12,000.
Question 5: After a 20% loss, an asset is worth £64,000. What was its original value?
- £80,000 (Correct answer)
- £76,800
- £84,000
- £72,000
Correct answer: £80,000
£64,000 = 80% of original. Original = £64,000 ÷ 0.80 = £80,000.
Question 6: A company sells 500 units per month at £35 each. Monthly costs are £14,500. What is the monthly profit?
- £3,000 (Correct answer)
- £2,500
- £3,500
- £4,000
Correct answer: £3,000
Revenue = 500 × £35 = £17,500. Profit = £17,500 − £14,500 = £3,000.
Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations 4
A shop sells an item for £180 which was bought for £120.
What is the percentage mark-up?