Q. A dishonest milkman purchased milk at 10 per liter, mixed 5 liters water in it. By selling the mixture at the rate of 10 per liter he earns a profit of 25%. Find the total amount of mixture that he sold
A. 20
B. 25
C. 50
D. none
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Let X stand for the amount of milk purchased in liters at 10 units of cost per liter. So his total cost is
10X
Since he added 5 liters of water to the X liters of milk he sold
X + 5 liters of mixture, and at 10 units price per liter, his sales revenue is
10*(X + 5) = 10X + 50 units
His profit is
Sales revenue - Cost = 10X + 50 - 10X = 50
His profit as a percentage of cost is
50/10X
and since we're told that equals 0.25
50/10X = 0.25
Therefore, X = 20, so the total mixture sold is 20 + 5 = 25
10X
Since he added 5 liters of water to the X liters of milk he sold
X + 5 liters of mixture, and at 10 units price per liter, his sales revenue is
10*(X + 5) = 10X + 50 units
His profit is
Sales revenue - Cost = 10X + 50 - 10X = 50
His profit as a percentage of cost is
50/10X
and since we're told that equals 0.25
50/10X = 0.25
Therefore, X = 20, so the total mixture sold is 20 + 5 = 25
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We can PLUG IN THE ANSWERS, which represent the amount of sold mixture.Joy Shaha wrote:Q. A dishonest milkman purchased milk at 10 per liter, mixed 5 liters water in it. By selling the mixture at the rate of 10 per liter he earns a profit of 25%. Find the total amount of mixture that he sold
A. 20
B. 25
C. 50
D. none
Start with the middle value.
B: 25 liters of sold mixture, implying 20 liters of purchased milk
Since the selling price for the mixture = $10 per liter, the total revenue for 25 liters of mixture = 25*10 = $250.
Since the cost of the purchased milk = $10 per liter, the total cost for 20 liters of purchased milk = 20*10 = $200.
Profit = (total revenue) - (total cost) = 250-200 = $50.
Profit/Cost = 50/200 = 1/4 = 25%.
Success!
The correct answer is B.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3