A milk merchant buys 30 litres of milk at the rate of Rs. 50 per litre and mixes 20 lines of water in it (water is free of cost). If he sells this mixture at the rate of Rs. 48 per litre, then what is the profit percentage?
Answer & explanation
Correct answer: option 2
Quantity of Milk = 30 L
Cost of milk = Rs. 50/L
Quantity of water added = 20 L,
Cost of Milk and Water mixture = Rs. 48/L.
⇒ Cost price = 30 L x Rs. 50/l = Rs. 1500.
⇒ Selling Price = (30 L + 20 L) x RS. 48 = Rs. 2400,
⇒ Profit percentage = \(\frac{2400 - 1500}{1500}\) x 100 = \(\frac{900}{1500}\) x 100 = 60 %.