Subject: General Aptitude · Chapter: Profit and Loss · Exam: · Marks: · Difficulty:
A milk vendor mixes water with milk in the ratio 1 : 4. He then measures 800 ml instead of a litre and sells the milk at a nominal profit of 20\% over the cost price. What is his actual profit percentage?
(a)37.5\%
(b)50\%
(c)62.5\%
(d)87.5\%
Answer
Answer (as printed): D
Explanation
Let C.P. of pure milk be ₹ 10 per litre. In 1 litre of the mixture, there is 800 ml milk and 200 ml water. But the milk vendor measures only 800 ml instead of a litre. So, quantity of milk in 1 litre mixture that he sells $$=(0.8 \times 800) \mathrm{ml}=640 \mathrm{ml} .$$ ∴ Actual C.P. of 1 litre $=₹ 6.40$. S.P. of 1 litre $=120 \%$ of $₹ 10=₹ 12$. Profit $=₹(12-6.40)=₹ 5.60$. $$\text { Profit } \%=\left(\frac{5.60}{6.40} \times 100\right) \%=87.5 \% \text {. }$$
Explanation as extracted from the printed page; notation may be imperfect.