A milk merchant buys 30 liters of milk at the rate of Rs. 50 per litre and mixes 20 litres of water in it (water is free of cost). If he sells this mixture at the rate of Rs. 48 per liter, then what is the profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 60%.
Cost price of the milk = 30 × 50 = Rs. 1500
Total volume of the mixture = 30 + 20 = 50 litres
Selling price of the mixture = 50 × 48 = Rs. 2400
Profit = 2400 - 1500 = Rs. 900
Profit percentage = (900/1500) × 100 = 60%
Therefore, the profit percentage for the milk merchant is 60%.