Multiple choice

A shopkeeper pays Rs. 20 per litre of milk. He adds water and sells the mixture at Rs. 25 per litre, thereby making 30% profit. The ratio of water to milk received by the customers is:

  1. 1 : 25

  2. 25 : 1

  3. 2 : 25

  4. 4 : 25

  5. None of these
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A Correct answer
Explanation

Let the cost price of milk be 20 and the selling price be 25. A 30% profit on cost means the effective cost of the mixture is 25/1.3 = 19.23. Using the alligation rule, the ratio of water (cost 0) to milk (cost 20) is (20 - 19.23) / (19.23 - 0) = 0.77 / 19.23, which simplifies to 1/25.

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