A milkman bought 50 liters of milk for ₹2000. 5 liters of milk spoiled. At what rate per liter should he sell the remaining milk to make a profit of 20% on his total outlay?
Show answer & explanation
Correct answer: A
Explanation
Total milk = 50 liters
Total cost = ₹2000
Spoilt milk = 5 liters
Saleable milk = 50 – 5 = 45 liters
Total selling price = 2000 + (20% × 2000)
= 2000 + 400 = ₹2400
Selling price per liter = 2400 ÷ 45 = ₹53.33