Profit on a tea mixture — Profit & Loss Aptitude Question
Profit on a tea mixture: A trader mixes 25 kg of tea at ₹60 per kg with 25 kg at ₹80 per kg and sells the mixture… Answer and worked solution on CodeKairo.
- Topic: Profit & Loss
- Section: Quantitative Aptitude
- Difficulty: Medium
- Time target: 75 seconds
Question
A trader mixes 25 kg of tea at ₹60 per kg with 25 kg at ₹80 per kg and sells the mixture at ₹84 per kg. What is his profit percent?
Options
- 15%
- 18%
- 20%
- 22%
Show the answer and the worked solution
Correct answer: C. 20%
Worked solution
- Cost = 25 × 60 + 25 × 80 = 1,500 + 2,000 = ₹3,500.
- Sale = 50 × 84 = ₹4,200.
- Profit = 700 on 3,500 = 20%.
Answer: 20%.
The idea
With equal quantities the average cost is the simple mean (₹70), and the profit follows from 84 against 70. Unequal quantities would need the weighted average.
Shortcut. Skip the totals: 84 ÷ 70 = 6 ÷ 5 (both divide by 14), so the selling price is a fifth above cost — 20%.
Common trap. 18% — dividing the ₹14 margin by the ₹84 selling price gives 16.7%, and the nearest option is 18%; profit is measured on the ₹70 cost.