sgr21 wrote:A bucket contains 1 litre of milk. A milkman removes 10% of the content of the bucket and replaces it with water. The next day the milkman again does the same operation and removes 10% of the contents of the bucket and replaces it with water. He then sells the one litre of milk to a customer at the rate of $12 per litre. If the milkman had purchased the milk at $10 per litre what is his profit percentage on his cost price keeping in mind that due to his mixing he was able to save some additional milk?
(A)20%
(B) 48.15%
(C) 50%
(D)55.45%
To make the math easier, let the bucket = 100 liters.
After 10% is removed, the amount of milk remaining in the bucket = 100 - (10% of 100) = 90 liters.
After another 10% is removed, the amount of milk remaining in the bucket = 90 - (10% of 90) = 81 liters.
At a cost price of $10 per liter, the total cost for the 81 liters of milk in the bucket = 10*81 = $810.
At a selling price of $12 per liter, the selling price for the entire 100-liter bucket = 12*100 = $1200.
Profit = 1200-810 = $390.
Profit percentage = profit/cost * 100 = 390/810 * 100 = 13/27 * 100 = (less than 1/2) * 100 = a bit less than 50%.
The correct answer is
B.
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