In two ways, a shopkeeper deceives his customer. He dilutes pure honey by 20% with water and raises the price of honey by 15%. He pays Rs.30 per kg for 40 kg of pure honey. What is his total profit from selling it?
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Correct answer: A
Explanation
The correct answer is Option 1 i.e.Rs.580.
In two ways, a shopkeeper deceives his customer. He dilutes pure honey by 20% with water and raises the price of honey by 15%. He pays Rs.30 per kg for 40 kg of pure honey. What is his total profit from selling it?
Honey bought: 40 kg
Dilution percentage: 20%
Weight of water added: 40 kg × 20% = 8 kg
Weight of pure honey remaining: 40 kg - 8 kg = 32 kg
Cost per kg of pure honey: Rs.30
Total cost of pure honey: 32 kg × Rs.30/kg = Rs.960
Price increase percentage: 15%
The effective weight of honey sold (including water): 40 kg (original weight)
Selling price per kg considering only price increase: Rs.30/kg × (1 + 15%) = Rs.34.50/kg
Total revenue from selling diluted honey: 40 kg × Rs.34.50/kg = Rs.1380
Profit from price increase: Rs.1380 (total revenue) - Rs.960 (cost of pure honey) = Rs.420
Total profit: Rs.160 (dilution) + Rs.420 (price increase) = Rs.580