Question
A milkman purchases milk at Rs 20/litre and mixes 4 litres of water in it. By selling the resultant mixture at the rate of Rs 20/litre, he earns a profit of 40%. The amount of mixture he had with him to sell was:
CAT 2021
Solution
Correct option is
(C)
Explanatory Answer :
To earn a profit of 40% at Rs 20/litre,
Cost price = 20/1.4 = 100/7
100/7--------20
100/7-------100/7-0
100/7--------20-(100/7)
100/7-------0(since water does not cost anything) Therefore,
Milk: Water = 100/7 : 40/7 = 5:2
So, in 4 litres of water, 10 litres of milk would be required. Resultant mixture = 14 litres
The question is "The amount of mixture he had with him to sell was:"
Hence, the answer is "14 litres".
C is the correct option
