A tea merchant blends two varieties of tea in the ratio of 5  : 4.The cost of first variety is Rs. 200 per kg and that of second variety is Rs. 300 per kg. She sells the blended tea at the rate of Rs. 250 per kg. Find out the percentage of her profit or loss.

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Kerala PSC Common Preliminary Exam (GRADUATE LEVEL) PYP - 101/22
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  1. 2.27% loss
  2. 2.27% profit
  3. 5.14% loss
  4. 5.14% profit

Answer (Detailed Solution Below)

Option 2 : 2.27% profit
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Detailed Solution

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Given:

Cost of first variety (C1) = ₹200 per kg

Cost of second variety (C2) = ₹300 per kg

Blending ratio = 5 : 4

Selling Price (SP) = ₹250 per kg

Formula used:

Cost Price (CP) of blended tea = \(\frac{C_1 \times W_1 + C_2 \times W_2}{W_1 + W_2}\)

Profit/Loss % = \(\frac{SP - CP}{CP} \times 100\)

Calculation:

CP = (200 × 5 + 300 × 4) / (5 + 4)

CP = (1000 + 1200) / 9 = 2200 / 9 ≈ ₹244.44 per kg

Profit % = ((250 − 244.44) / 244.44) × 100

= (5.56 / 244.44) × 100 ≈ 2.27% (Profit)

∴ The correct answer is option (2): Profit of 2.27%

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