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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5% profit

3.5% loss

3.5% profit

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 $SP = 23 x 9 x = 207 x$

and $CP = 20 x 5 x + 25 x 4 x = 200 x$

$Profit % = \frac{7 x}{200 x} \times 100 = 3.5 %$

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