Multiple choice

There is an iron ore which contains 80% iron. If the cost of the ore is Rs. 0.30 per kg and the cost to produce iron from 100 kg of the ore is Rs. 40, each kg of iron being sold at Re. 1, then what is the profit percentage?

  1. 12.5%

  2. 14.28%

  3. 16.66%

  4. 20%

  5. 26%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cost for 100 kg ore = 100 * 0.30 + 40 = 30 + 40 = 70. Iron content = 80% of 100 kg = 80 kg. Revenue = 80 * 1 = 80. Profit = 80 - 70 = 10. Profit % = (10/70) * 100 = 14.28%.

AI explanation

From 100 kg of ore, 80 kg of iron is extracted because the ore contains 80% iron. The total cost to produce this iron is 30 for the ore plus 40 for production, totaling 70, and selling the 80 kg of iron at 1 per kg gives a revenue of 80. The profit is 10 on a cost of 70, so using the profit percentage formula, 10 divided by 70 multiplied by 100 gives a 14.28% profit.

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