A shopkeeper mixes three varieties of tea costing ₹60 per Kg , ₹80 per Kgand ₹120 Kg in the ratio 5 : 8 : 7. At what price (in₹) per Kg should he sell the tea mixture to earn a 25% profit?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 111.25
Total parts = 5 + 8 + 7 = 20
Total cost = (5 × 60) + (8 × 80) + (7 × 120) = 300 + 640 + 840 = ₹1780
Average CP per kg = 1780/20 = ₹89
Selling Price = 89 × 1.25 = ₹111.25