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Oil, equal to 20% of the weight of groundnut, is extracted in a mill. The matter left after extraction is sold as cattle feed at the rate of Rs. 12.5/kg. The groundnuts are bought at Rs. 20/kg. The processing cost is Rs. 5/kg. At what price (Rs. per kg) should the oil be sold to earn 20% profit on total costs (Total cost = Cost of groundnuts and Processing costs)?1). 2502). 1503). 2004). 100 |
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Answer» Let the Total weight of the groundnut = 100 kgs Total cost = 100 × (20 + 5) = Rs. 2500 AMOUNT that should be received after 20% PROFIT = 2500 × 1.2 = Rs. 3000 Since 80% of the weight of groundnut is left and SOLD as cattle feed for Rs. 12.5/kg; Amount received after SELLING the waste = 100 × 0.8 × 12.5 = Rs. 1000 ∴ Remaining amount to be received by selling oil = 3000 – 1000 = Rs. 2000 Since weight of oil = 100 × 0.2 = 20 litres ∴ Selling cost of oil = 2000/20 = Rs. 100 per liter |
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