A person buys tea of three different qualities at βΉ 800, βΉ 500, and βΉ 300 per kg, respectively, and the amounts bought are in the proportion 2 : 3 : 5. She mixes all the tea and sells one-sixth of the mixture at βΉ 700 per kg. The price, in INR per kg, at which she should sell the remaining tea, to make an overall profit of 50%, is
B
Step-by-Step Solution
Key idea: This is a mixture costing question with a partial sale and an overall profit target. The safe method is to track total cost price and total selling price, not to average selling prices directly.
Why this method applies: The tea qualities are bought in a quantity ratio, mixed, and then only part of the mixture is sold first. The remaining selling price must be chosen so that the total revenue gives 50% profit on the total cost.
Step 1: Let the quantities bought be , , and kg.
Total quantity:
Step 2: Compute total cost price.
Cost of first quality:
Cost of second quality:
Cost of third quality:
Total CP:
Step 3: Overall profit is 50%, so total selling price must be:
Step 4: One-sixth of the mixture is sold at βΉ700 per kg.
One-sixth quantity:
Revenue from this part:
Step 5: Find the revenue needed from the remaining tea.
Remaining revenue:
Step 6: Find the remaining quantity.
Step 7: Required selling price per kg of remaining tea:
Answer: B. The remaining tea should be sold at βΉ688 per kg.
Common trap: Do not simply set the remaining price equal to the 50% profit average price. Since one-sixth is already sold at βΉ700, the remaining price must be found from total revenue balance.