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25 Oct 2020, 07:51
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Bunuel
Since we are asked about the ratio, we can take any volume of the milk/water mixture.
Just think what would make the cost and selling price equal per unit of mixture sold.
As 20% converts to 1/5, we can take 5 litre of milk and add 1 litre of water to make the milk/water mixture of volume 6 litre.
Now, selling 6 at the same per unit price as it costed we would have
CP = 5 i.e. 1 per litre of milk
SP = 6 where per litre price is still 1 per litre of mixture.
So, profit = 1 i.e. 20% of 5
Hence ratio, milk:water = 5:1
Answer B.
26 Oct 2020, 21:03
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Make a few assumptions and Choose Smart Numbers to make the calculation easier:
Let $Cost price per gallon (CP) = $100
Let the ORIGINAL Quantity of gallons purchased (Q) = 10
If the vendor sells these 10 gallons at CP, he will make 0-Zero Profit
Instead, the vendor sells at CP and is still able to gain a 20% Profit ------ Profit Percentage% is calculated in terms of CP
In order for the Profit Percentage% = +20% ------> the Vendor's Revenue (R) must be:
R = (120%) * (CP) ----- (equation 1)
Revenue is Calculated as:
R = ($Sales price per unit) * (Q of units sold) ------ (equation 2)
equation 1 = equation 2
(120%) * (CP) = ($Sales price) * (Q)
we are told that: $Sales Price = CP
(120%) * (CP) = (CP) * (Q)
In order to Satisfy the fact that Profit Percentage% = +20% -------> the Q-Sold must INCREASE by +20%
the vendor INCREASES the Q-Sold by diluting the Milk with Water:
Original Q = 10 gallons Milk
%Increase in Q by 20%
_______________________
NEW Quantity must = 12 gallons
Originally Had 10 gallons of Milk ------> Therefore must add +2 gallons of Water to get to a TOTAL Q-Sold of 12 Gallons
Milk : Water : TOTAL = 10 : 2 : 12 = 5 : 1 : 6
the Ratio of MILK : WATER = 5 : 1
-B-
Let $Cost price per gallon (CP) = $100
Let the ORIGINAL Quantity of gallons purchased (Q) = 10
If the vendor sells these 10 gallons at CP, he will make 0-Zero Profit
Instead, the vendor sells at CP and is still able to gain a 20% Profit ------ Profit Percentage% is calculated in terms of CP
In order for the Profit Percentage% = +20% ------> the Vendor's Revenue (R) must be:
R = (120%) * (CP) ----- (equation 1)
Revenue is Calculated as:
R = ($Sales price per unit) * (Q of units sold) ------ (equation 2)
equation 1 = equation 2
(120%) * (CP) = ($Sales price) * (Q)
we are told that: $Sales Price = CP
(120%) * (CP) = (CP) * (Q)
In order to Satisfy the fact that Profit Percentage% = +20% -------> the Q-Sold must INCREASE by +20%
the vendor INCREASES the Q-Sold by diluting the Milk with Water:
Original Q = 10 gallons Milk
%Increase in Q by 20%
_______________________
NEW Quantity must = 12 gallons
Originally Had 10 gallons of Milk ------> Therefore must add +2 gallons of Water to get to a TOTAL Q-Sold of 12 Gallons
Milk : Water : TOTAL = 10 : 2 : 12 = 5 : 1 : 6
the Ratio of MILK : WATER = 5 : 1
-B-
15 Nov 2025, 20:41
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Bunuel
Here's a very simple approach. -> 10 milk to be sold at the price of 12 milk. So Water = 2. So the ratio of milk:water is 10:2 = 5:1
