Question

A milkman buys milk at Rs. 8.50, Rs. 9, and Rs. 12.50 per liter for 3 successive years, then what's the typical cost per liter of milk if he spends Rs. 8000 each year?

1. 8.56
2. 9.71
3. 17.56
4. 10.56
5. None of these

Answer 1

Correct Answer - Option 2 : 9.71

Given:

A milkman buys milk at Rs. 8.50, Rs. 9, and Rs. 12.50 per liter for three successive years if spends Rs. 8000

Calculation

Total consumed milk in 3 years = 8000/8.70 + 8000/ 9 + 8,000/12.50

Milk consumed = 8000[2/17 + 1/9 + 2/25]

= 8000[450 + 425 + 306]/3825

= 8000[1181]/3825

= 9448000/3825

Total amount spend = 8000 × 3 = 24,000

The average cost price of milk = 24,000 × 3825/9448000

The average cost price of milk = 91800000/9448000 = 9.71

Then Average cost price of milk = Rs. 9.71