Question

9.A milkman mixes water and
milk in the ratio 1:2. If the cost
price of water is one-tenth of
milk and the milkman claims to
sell the milk at a profit of 20 %,
then what is his actual net profit
percentage ?​

Answer 1

His actual net profit percentage=71.42%

1. Let's say that milk cost Rs.X per liter

Given that the milkman sells the milk at 20% profit

then Selling price is X+20*X/100=1.2X

2. Now let's find actual cost price of milk

a liter of milk consists of 1 portion of water and 2 portions of milk

That means 1/3 water and 2/3 milk

2/3 of milk would cost him 2/3 of X=2X/3

given cost of water is 1/10 of milk=X/10 per liter

1/3 of water would cost him 1/3 of X/10=(1/3)*X/10=X/30

So total cost price =2X/3+X/30=7X/10

Profit percentage=(SP-CP)*100/CP

Profit percentage=(1.2X-7X/10)*100/(7X/10)

Profit percentage=71.42%