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By adding 20% saw dust in tea trader earns profit of 25% on selling price. What is the total profit of trader if saw dust was obtained at free of cost and original tea cost is Rs.  500 

By adding 20% saw dust in tea trader earns profit of 25% on selling price. What is the total profit of trader if saw dust was obtained at free of cost and original tea cost is Rs.  500  Correct Answer Rs 100

Given:

20% of saw dust + 80% of tea = 25% of profit

C.P. of tea = Rs 500

Formula used:

S.P. = C.P. + Gain

S.P. = C.P. – Loss

Profit% = (Profit/C.P.) × 100

Calculation:

It is stated that on addition of 20% of saw dust profit is observed

⇒ C.P. of original tea = Rs 500 for 100%

Hence, If saw dust was not added than selling price of tea would be Rs.  500 for 100% tea

⇒ But original tea is only 80% in the composition hence, selling price of this tea = 0.8 × 500

⇒ Selling price of 80% of tea = 400 = cost price of 80% of original tea

⇒ Selling price of mixture = 400 + (0.25 × 400)

⇒ Selling price of mixture = 500

⇒ Actual profit = Selling price of mixture – Selling price of 80% of mixture

⇒ Actual profit = 500 – 400

∴ Trader earned Rs 100 as total profit

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