Question

A milkman purchases the milk at rs. X per litre and sells it at rs. 2x per litre still he mixes 2 litres water with every 6 litres of pure milk. What is the profit percentage?

Answer 1

Hii dear,

# Answer- Profit margin=166.66%

# Explaination-

Consider milkman buys Y litres milk at rate X.

Hence total cost price = XY Rs.

Now he adds Y/3 litre water into it.

Total mixture = Y + Y/3 = 4Y/3

Now he sells milk at price 2X,

Total selling price = 2X.4Y/3 = 8/3 XY

Selling price/cost price = 8/3 XY / XY

Selling price/cost price = 266.66%

Profit margin = 266.66%-100% = 166.66%

Profit margin of milkman is 166.66%.