A milk seller claims to sell milk at its actual cost price, yet he secretly adds water to it and thus secures a 25% profit. In what proportion of water to milk must the mixture be prepared to yield this gain?
Show answer & explanation
Correct answer: B
Explanation
Given:
The milk vendor sells at the cost price.
Profit = 25%
Formula:
Profit % = (Water / Milk) × 100
25 = (Water / Milk) × 100
Water / Milk = 25/100 = 1/4
Water : Milk = 1 : 4