Question

By adding 20% saw dust in tea trader earns profit of 25% on selling price. What is the total profit of trader if saw dust was obtained at free of cost and original tea cost is Rs.  500 
1. Rs 75
2. Rs 125
3. Rs 100
4. Rs 225
5. Rs 150

Answer 1

Correct Answer - Option 3 : Rs 100

Given:

20% of saw dust + 80% of tea = 25% of profit

C.P. of tea = Rs 500

Formula used:

S.P. = C.P. + Gain

S.P. = C.P. – Loss

Profit% = (Profit/C.P.) × 100

Calculation:

It is stated that on addition of 20% of saw dust profit is observed

⇒ C.P. of original tea = Rs 500 for 100%

Hence, If saw dust was not added than selling price of tea would be Rs.  500 for 100% tea

⇒ But original tea is only 80% in the composition hence, selling price of this tea = 0.8 × 500

⇒ Selling price of 80% of tea = 400 = cost price of 80% of original tea

⇒ Selling price of mixture = 400 + (0.25 × 400)

⇒ Selling price of mixture = 500

⇒ Actual profit = Selling price of mixture – Selling price of 80% of mixture

⇒ Actual profit = 500 – 400

∴ Trader earned Rs 100 as total profit