A wholesale wheat seller sells 0.8 grams of wheat instead of 1 gram at a rate of Rs. 15 per kg. A retail shopkeeper purchases 100 kg wheat from the wholesale wheat seller and sells it to a small shop keeper so that he earns a profit of Rs. 100. By the time it reaches the small shopkeeper 20% of the wheat became spoilt. In order to escape from loss, how much should 1 kg of wheat be sold at?

A wholesale wheat seller sells 0.8 grams of wheat instead of 1 gram at a rate of Rs. 15 per kg. A retail shopkeeper purchases 100 kg wheat from the wholesale wheat seller and sells it to a small shop keeper so that he earns a profit of Rs. 100. By the time it reaches the small shopkeeper 20% of the wheat became spoilt. In order to escape from loss, how much should 1 kg of wheat be sold at? Correct Answer Rs. 25

Amount of wheat for which the retail shop keeper paid = 100 kg

Original amount of wheat he purchased = 0.8 × 100 = 80kg

Amount the retail shopkeeper pays = 100 × 15 = 1500

He sells it with Rs. 100 profit.

⇒ The amount that the small shopkeeper pays to the retail shopkeeper = 1500 + 100 = Rs. 1600

With no loss, he should sell all the wheat for Rs. 1600.

⇒ But amount of wheat he could sell = (100 – 20) /100 × 80 = 64

∴ Price of 1 kg of rice = 1600/64 = Rs. 25