Multiple choice

A rice trader mixes 24 kg of rice priced at Rs 20/kg with 30 kg of rice priced at Rs 34/kg. If he sells the mixture at Rs 30/kg, find his profit or loss percentage.

  1. 8% Profit

  2. 8% Loss

  3. 7.4% Profit

  4. 7.4% Loss

  5. None of these
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A Correct answer
Explanation

Total cost = (24 * 20) + (30 * 34) = 480 + 1020 = 1500. Total weight = 24 + 30 = 54 kg. Total revenue = 54 * 30 = 1620. Profit = 1620 - 1500 = 120. Profit percentage = (120 / 1500) * 100 = 8%.

AI explanation

Using the weighted average formula, the total cost price is (24 kg times Rs 20 per kg) plus (30 kg times Rs 34 per kg), which equals Rs 480 plus Rs 1020, giving a total cost of Rs 1500 for 54 kg. The selling price at Rs 30 per kg for the entire 54 kg mixture yields total revenue of 54 times 30, equaling Rs 1620. The profit is Rs 1620 minus Rs 1500, resulting in Rs 120. Calculating the profit percentage using the formula (Profit divided by Cost Price) times 100 gives (120 divided by 1500) times 100, which equals 8% profit.

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