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A trader blends two varieties of pulses - one priced at Rs 80 per kg and the other at Rs 120 per kg - in the ratio 3 : 2. He then sells the blend at Rs 105.60 per kg. Determine his profit or loss percentage.

1. 10% Profit
2. 10% Loss
3. 12% Profit
4. 12% Loss

Correct answer: 10% Profit

Solution

The average cost is (3x80 + 2x120)/5 = (240 + 240)/5 = Rs 96 per kg. Selling at Rs 105.60 gives a gain of Rs 9.60, which is 9.60/96 = 10%. So it is a 10% profit.

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