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A dishonest milkman mixes water and milk and claims to sell the milk

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Joined: 26 Mar 2013
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A dishonest milkman mixes water and milk and claims to sell the milk  [#permalink]

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18 Jan 2019, 00:19
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Difficulty:

45% (medium)

Question Stats:

47% (01:20) correct 53% (01:14) wrong based on 42 sessions

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A dishonest milkman mixes water and milk and claims to sell the milk at cost price, thereby making a profit of 25%. How much water is there in one litre that he delivers to the customers?

A)200 ml
B)250 ml
C)166.66 ml
D)180 ml
E) 320 ml

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Director
Joined: 18 Jul 2018
Posts: 679
Location: India
Concentration: Finance, Marketing
WE: Engineering (Energy and Utilities)
A dishonest milkman mixes water and milk and claims to sell the milk  [#permalink]

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18 Jan 2019, 01:17
1
Let the cost price of milk be 1.
Let the cost price of water be 0 (as it's freely available)
He's selling the mixture at CP with 25% profit.
Using Allegation method.

Final ratio is 4(milk):1(water)

Water in 1liter of milk = 1000/5 = 200ml

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Joined: 04 Aug 2010
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A dishonest milkman mixes water and milk and claims to sell the milk  [#permalink]

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18 Jan 2019, 10:02
1
Mo2men wrote:
A dishonest milkman mixes water and milk and claims to sell the milk at cost price, thereby making a profit of 25%. How much water is there in one litre that he delivers to the customers?

A)200 ml
B)250 ml
C)166.66 ml
D)180 ml
E) 320 ml

Let the cost per ml = \$1, implying that the milkman sells the 1000-ml mixture for \$1000.
For every \$4 in cost, the milkman must make \$1 in profit -- a profit of 25% -- yielding a selling price of \$5.
Implication:
Of every \$5 in the selling price, \$4 = cost, \$1 = profit.
Since the cost is equal to 4/5 of the selling price, we get:
Cost = (4/5)(1000) = \$800, profit = 1000-800 = \$200.
Thus, the 1000-ml mixture is composed of 800 ml of milk (at a cost of \$800) and 200 ml of water (at a cost of \$0).

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Re: A dishonest milkman mixes water and milk and claims to sell the milk  [#permalink]

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18 Jan 2019, 11:17
2
Let 1000ml milk cost \$100. That's some expensive milk no wonder milkman is cheating

The milkman is adding some amount, say x ml in the milk and selling 1000ml of this mixture for 100 (the cost price claimed by milkman) and making 25% profit.

For someone to make 25% profit, the selling price should be 1.25 times the cost price. So, for the milkman, the cost of 1000 ml of the mixture is 100/1.25 or \$80.

So the milkman needs only \$80 for a mixture of 1000 ml -> meaning only 800ml is milk and hence the remaining 200ml is water.

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Joined: 03 Jan 2017
Posts: 19
Location: India
Concentration: Finance, Economics
Re: A dishonest milkman mixes water and milk and claims to sell the milk  [#permalink]

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27 Jan 2019, 10:28
A better way to look at the question is, if the merchant is selling something at a profit of 25% what is its cost price.

We can use a relation that if something increases by 1/4 i.e. 25%, we have to reduce that something by 1/5 i.e. 20% to come down to the original price.

1000 needs to be reduced by 20% to know what the actual amount of milk is sold at CP that merchant claims.

1000*1/5 =200ml

Ans: A
Re: A dishonest milkman mixes water and milk and claims to sell the milk   [#permalink] 27 Jan 2019, 10:28
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