A milkman mixes water in pure blends milk and offers the mixture for sale at the original cost price of milk. If he mixes 0.75 liters of water in every 5.25 liters of milk and sells the entire mixture at the price of pure milk, what is his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
Milk : Water = 5.25 : 0.75 = 7 : 1
This means 1 litre of water was mixed with 7 litres of milk.
Total mixture = 8 litres
Cost of pure milk = Cost of 7 litres
Profit = Cost of 1 litre of milk
Profit % = (1/7) × 100 = 14.29%