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Naveen runs a tea stall. Every day, he buys 10 litre of milk at the rate of Rs. 55 per litre. He spends Rs. 85 on tea leaves, Rs. 75 on sugar, and Rs. 35 on cooking gas. With all these ingredients, he makes and sells 100 cups of tea. Additionally, Naveen spends 55 paise per disposable glass to serve the tea. At what price should he sell each cup of tea to earn a profit of 50% on the entire transaction?

Naveen runs a tea stall. Every day, he buys 10 litre of milk at the rate of Rs. 55 per litre. He spends Rs. 85 on tea leaves, Rs. 75 on sugar, and Rs. 35 on cooking gas. With all these ingredients, he makes and sells 100 cups of tea. Additionally, Naveen spends 55 paise per disposable glass to serve the tea. At what price should he sell each cup of tea to earn a profit of 50% on the entire transaction? Correct Answer Rs. 12

Given:

Naveen buys 10 litre of milk at the rate of Rs. 55 per litre.

He spends Rs. 195 on tea leaves, sugar and cooking gas

Naveen spends 55 paise per disposable glass to serve the tea

Calculation:

Total cost = 55 × 10 + 195 + 55 paise × 100 = Rs. 800

Cost of 1 cup of tea = 800/100 = Rs. 8

Profit = 50% 

The selling price of 1 cup of tea = 8 + 50% of 8 = Rs. 12 per cup

 

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