Civil Service Numerical Reasoning Test Profit, Loss and Financial Calculations

Question 1

A product costs £40 to produce and is sold for £52. What is the profit margin as a percentage of the selling price?

Accepted Answer

23.1%

Answer

Profit = £12. Profit margin = (12 ÷ 52) × 100 = 23.1%.

Question 2

A business made a profit of £18,000 last year. This year profits fell by 25%. What is this year's profit?

Accepted Answer

£13,500

Answer

25% of £18,000 = £4,500. This year's profit = £18,000 − £4,500 = £13,500.

Question 3

A shop buys goods for £600 and sells them for £720. What is the profit as a percentage of the cost price?

Accepted Answer

20%

Answer

Profit = £120. Percentage of cost = (120 ÷ 600) × 100 = 20%.

Question 4

Revenue is £85,000 and costs are £68,000. What is the profit as a percentage of revenue?

Accepted Answer

20%

Answer

Profit = £17,000. (17,000 ÷ 85,000) × 100 = 20%.

Question 5

A trader bought items for £2.50 each and sold them for £3.75 each. What is the percentage profit on cost?

Accepted Answer

50%

Answer

Profit = £1.25. (1.25 ÷ 2.50) × 100 = 50%.

Civil Service Numerical Reasoning Practice Test