Question

A farmer sold 100kg wheat grains at `10/kg to a miller. Miller converted 100kgs of
wheat grains into 100kg flour and sold it at `12/kg. Find out the value of production
by the miller?

Answer 1

Basically, miller earns on the difference of prices for wheat and flour.

The price of wheat :

1kg = 10

100Kg =?

100 × 10 = 1000


The price of flour :

1 Kg = 12

100 Kgs =?

100 × 12 = 1200

The difference in price :

1200 - 1000 = 200

The value of production is thus :

200