Multiple choice

A person buys tea of three different qualities at Rs. 800, Rs. 500, and Rs. 300 per kg, respectively, and the amounts bought are in the proportion 2 : 3 : 5. She mixes all the tea and sells one-sixth of the mixture at Rs. 700 per kg. The price, in INR per kg, at which she should sell the remaining tea, to make an overall profit of 50%, is

  1. 653

  2. 688

  3. 692

  4. 675
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let amounts be 2k, 3k, 5k. Total mass = 10k. Cost = 2k*800 + 3k*500 + 5k*300 = 1600k + 1500k + 1500k = 4600k. Target Revenue = 4600k * 1.5 = 6900k. Sold 1/6 of 10k = 5k/3 at 700 = 3500k/3. Remaining 25k/3 must be sold for 6900k - 3500k/3 = 17200k/3. Price = (17200k/3) / (25k/3) = 17200/25 = 688.

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