The ladder / Level 1 · Trader Business math
Trader business math: mixed quiz
Twelve questions across margins, discounts, GST, break-even, interest, stock, cash cycle, reordering, average cost and units.
By Manoj Sahukar · October 2026 · 6 min read
12 questions drawn from all the trader business-math topics, from basic to advanced. Each answer links back to its topic page if you want to revise.
How numbers are rounded on these pages. Calculations are done at full precision and rounded only at the end, half up. Rupee amounts are rounded to the nearest rupee unless shown with paise, in which case to the nearest paisa. Percentages are shown to two decimal places, and days to one decimal place. Break-even quantities and reorder levels are rounded up to the next whole unit, because rounding down would leave you short. Economic order quantity is rounded to the nearest whole unit. Interest for a number of days uses a 365-day year. All examples and quiz questions are Hypothetical : they show the method, not real prices or rates.
Mixed quiz Pick an answer to see at once whether it is right, with a short explanation. Each question takes one try; your score appears at the end. No answers are sent anywhere. (Without JavaScript, open “Show answer” under each question.)
Break-even · Basic Fixed costs are ₹24,000 a month. You buy at ₹70 and sell at ₹82, with no other variable costs. What is the break-even quantity?a 293 units b 343 units c 2,000 units d 200 units
Show answer Answer: (c) 2,000 units
Contribution = ₹82 − ₹70 = ₹12. Break-even = ₹24,000 ÷ ₹12 = 2,000 units.
Why the other options are wrong:
(a) That divides by the selling price, not the contribution.(b) That divides by the cost price.(d) A decimal slip: ₹24,000 ÷ ₹12 is 2,000.Revise this topic →
Discounts · Intermediate List price ₹8,000 with a chain discount of 20% + 5%. What is the net price?a ₹6,000 b ₹6,400 c ₹7,600 d ₹6,080
Show answer Answer: (d) ₹6,080
₹8,000 × 0.80 = ₹6,400; ₹6,400 × 0.95 = ₹6,080.
Why the other options are wrong:
(a) That takes a flat 25% off.(b) That applies only the 20%.(c) That applies only the 5%.Revise this topic →
Margin and markup · Advanced You buy a case for ₹950. Freight is ₹30 and handling ₹20 per case. What price gives a 12% margin on landed cost?a ₹1,120.00 b ₹1,079.55 c ₹1,136.36 d ₹1,064.00
Show answer Answer: (c) ₹1,136.36
Landed cost = ₹950 + ₹30 + ₹20 = ₹1,000. Price = ₹1,000 ÷ 0.88 = ₹1,136.36.
Why the other options are wrong:
(a) That is a 12% markup on landed cost.(b) That ignores freight and handling.(d) That is a 12% markup on the purchase price only.Revise this topic →
Stock turnover · Basic Your stock turns over 8 times a year. About how many days does stock sit with you?a 8.0 days b 45.6 days c 2,920.0 days d 4.6 days
Show answer Answer: (b) 45.6 days
365 ÷ 8 = 45.6 days.
Why the other options are wrong:
(a) That is the turnover, not days.(c) That multiplies instead of dividing.(d) A decimal slip.Revise this topic →
GST · Intermediate A price of ₹1,180 includes 18% GST. How much GST is inside it?a ₹212.40 b ₹180.00 c ₹1,000.00 d ₹21.24
Show answer Answer: (b) ₹180.00
GST = ₹1,180 × 18 ÷ 118 = ₹180. Taxable value = ₹1,000.
Why the other options are wrong:
(a) That takes 18% of the inclusive price; GST is 18% of the taxable value.(c) That is the taxable value, not the GST.(d) A decimal slip on the wrong method (1.8% of ₹1,180).Revise this topic →
Simple interest · Advanced You get ₹1,00,000 today and must repay ₹1,05,000 after 45 days. What simple annual rate is that (365-day year)?a 5.00% b 60.00% c 40.00% d 40.56%
Show answer Answer: (d) 40.56%
R = ₹5,000 × 100 ÷ (₹1,00,000 × 45 ÷ 365) = 40.56% per annum.
Why the other options are wrong:
(a) 5% is for 45 days, not a year.(b) That treats 45 days as a month.(c) That uses a 360-day year.Revise this topic →
Cash cycle · Basic Inventory days 25, debtor days 40, creditor days 30. Cash conversion cycle?a 95.0 days b 35.0 days c 15.0 days d 65.0 days
Show answer Answer: (b) 35.0 days
25 + 40 − 30 = 35 days.
Why the other options are wrong:
(a) Creditor days are subtracted, not added.(c) That subtracts debtor days.(d) That leaves out creditor days.Revise this topic →
Reorder and order quantity · Intermediate Annual demand 4,800 units, cost per order ₹300, holding cost ₹8 per unit per year. What is the EOQ?a 600 units b 3,60,000 units c 424 units d 1,200 units
Show answer Answer: (a) 600 units
√(2 × 4,800 × 300 ÷ 8) = √3,60,000 = 600 units.
Why the other options are wrong:
(b) That forgets the square root.(c) That leaves out the 2 in the formula.(d) That is a quarter of annual demand, not the EOQ.Revise this topic →
Compound interest · Advanced A finance company charges 18% per annum compounded monthly (1.5% a month). Effective annual rate?a 18.00% b 19.25% c 19.56% d 216%
Show answer Answer: (c) 19.56%
1.015¹² − 1 = 19.56%.
Why the other options are wrong:
(a) That ignores compounding.(b) That is quarterly compounding.(d) That multiplies 18% by 12.Revise this topic →
Weighted average cost · Basic You buy 60 units at ₹100 and 40 units at ₹110. What is the weighted average cost per unit?a ₹104 b ₹105 c ₹106 d ₹210
Show answer Answer: (a) ₹104
(₹6,000 + ₹4,400) ÷ 100 = ₹104.
Why the other options are wrong:
(b) That is the simple average of the two prices.(c) That swaps the quantities.(d) That adds the prices.Revise this topic →
Units and unit prices · Intermediate A 400 g pack costs ₹48 and a 1.5 kg pack costs ₹172.50. Which is cheaper per kg?a The 400 g pack, because ₹48 is less b The 1.5 kg pack: ₹115 per kg against ₹120 c They cost the same per kg d The 400 g pack: ₹120 per kg against ₹125
Show answer Answer: (b) The 1.5 kg pack: ₹115 per kg against ₹120
₹48 ÷ 0.4 = ₹120 per kg; ₹172.50 ÷ 1.5 = ₹115 per kg.
Why the other options are wrong:
(a) Compare per kg, not the pack price.(c) ₹120 and ₹115 are not the same.(d) ₹172.50 ÷ 1.5 is ₹115, not ₹125.Revise this topic →
Cash cycle · Advanced Credit sales are ₹1,09,50,000 a year. You cut debtor days from 45 to 30. Your bank limit costs 12% a year. What is the yearly interest saving?a ₹4,50,000 b ₹1,62,000 c ₹54,000 d ₹36,000
Show answer Answer: (c) ₹54,000
Daily credit sales = ₹30,000. 15 days × ₹30,000 = ₹4,50,000 released. × 12% = ₹54,000 a year.
Why the other options are wrong:
(a) That is the cash released, not the interest saved.(b) That applies 12% to all receivables at 45 days.(d) That uses 10 days instead of 15.Revise this topic →