A tea dealer blends two varieties of tea, one priced at ₹120 per kilogram and the other at ₹150 per kilogram. He sells the combined mixture at ₹168 per kilogram and earns a 20% profit on the overall cost. Determine the proportion (by weight) in which the two types of tea must be mixed to obtain the desired selling price and profit.
Show answer & explanation
Correct answer: C
Explanation
Given:
Price of the first tea = ₹120/kg
Price of the second tea = ₹150/kg
Selling price = ₹168/kg
Profit = 20%
By the formula:
SP = CP × (100 + profit%)/100
168 = CP × 120/100
CP = 168 × 100/120
CP = ₹140/kg
Now the average price of the mixture = 140
150 − 140 = 10
140 − 120 = 20
Ratio = 10 : 20 = 1 : 2