A can contains 40 litres of oil at Rs. 50/litre. Another can contains 60 litres of oil at Rs. 60/litre. They are mixed, and 20 litres are sold at Rs. 70/litre. How much profit or loss does the seller make on this sale?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹280 profit.
Cost of first oil = 40 × 50 = ₹2000
Cost of second oil = 60 × 60 = ₹3600
Total = 100 litres, total cost = ₹5600
CP per litre = = ₹56
Cost of 20 litres = 20 × 56 = ₹1120
SP = 20 × 70 = ₹1400
Profit = 1400 − 1120 = ₹280