Question

A trader sells one brand of tea at ₹150 per kg, incurring a 25% loss. He also sells another brand of tea at ₹200 per kg, incurring a 20% loss. If he mixes the two brands in equal proportions and sells the mixture at ₹175 per kg, what is his overall profit or loss percentage?

• A. Loss of 22.22%
• B. Profit of 22.22%
• C. Loss of 25%
• D. Profit of 25%

Answer 1

Answer:

A. Loss of 22.22%

First find the cost prices.

First brand

Sold at ₹150 with (25%) loss.

$\text{CP}_1 = \frac{150 \times 100}{75} = 200$

Second brand

Sold at ₹200 with (20%) loss.

$\text{CP}_2 = \frac{200 \times 100}{80} = 250$

They are mixed in equal quantities.

Average cost price of mixture

$\frac{200 + 250}{2} = 225$

Selling price of mixture = ₹175 per kg.

Loss

225 - 175 = 50

Loss percentage

$\frac{50}{225} \times 100$
$= \frac{2}{9}\times 100$
$= 22.22\%$

So, the trader incurs a:

$\boxed{22.22\% \text{ loss}}$