I've added the phrase in red to clarify the intent of the problem:
spd143 wrote:A dishonest milkman wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing $33 per liter so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for $36 per liter. In what ratio should he mix the water and milk?
,
(A) 1:20
(B) 1:10
(C) 1:8
(D) 1:4
(E) 6:11
We can plug in the answers, which represent the ratio of water to milk.
Answer choice C: W:M = 1:8.
Cost of 1 liter of water and 8 liters of milk = (1*0) + (8*33) = 264.
Selling price of 9 liters of mixture = 9*36 = 324.
Profit/Cost = (324-264)/264 = 60/264 = 15/66 = 5/22 = more than 20%.
Incorrect: the required profit is 20%.
To REDUCE the profit, MORE MILK must be used.
Eliminate C, D and E.
Answer choice B: M:W = 1:10
Cost of 1 liter of water and 10 liters of milk = (1*0) + (10*33) = 330.
Selling price of 11 liters of mixture = 11*36 = 396.
Profit/Cost = (396-330)/330 = 66/330 = 11/55 = 1/5 = 20%.
Success!
The correct answer is
B.
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