A milkman bought 30 litres at ₹40/litre and 20 litres at ₹55/litre. He mixed them and sold the mixture at ₹50/litre. What was his profit or loss?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Profit of ₹200
Cost of 30 litres at ₹40/litre = 30 × 40 = ₹1,200
Cost of 20 litres at ₹55/litre = 20 × 55 = ₹1,100
Total cost = 1,200 + 1,100 = ₹2,300
Total quantity = 30 + 20 = 50 litres
Selling price per litre = ₹50
Total selling price = 50 × 50 = ₹2,500
Profit = Selling price - Cost price = 2,500 - 2,300 = ₹200