Q.

A company blends two varieties of tea from two different tea gardens, one variety costing 20 per kg and other  25 per kg, in the ratio 5 : 4. He sells the blended tea at 23 per kg. Find his profit percent :

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a

5% profit

b

3.5% profit

c

3.5% loss

d

No profit, no loss

answer is C.

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Detailed Solution

Let the quantity of two varieties of tea be 5x kg and 4x kg, respectively

Now SP= 23 x 9x = 207x

andCP=20 x 5x+25 x4x=200x

 Profit %=7x200x×100=3.5%

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