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seems to be a CAT question rather a gmat question... nevertheless good for practise.
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A milkman has a solution of milk and water in the ratio 8:1.He takes one-third of this solution and replaces it with water. If he sells the solutions (both initial and final) at the cost price of pure milk, what is the ratio of profit percentages from initial and final solution? Assume that water does not cost anything.

A. 2:11
B. 4:9
C. 3:7
D. 8:9
E. 13:23

(adapted from gmatfree)

Initial solution milk : water = 8 : 1
So if cost price is 8, selling price is 9 i.e. profit is 1/8 = 2/16

Final solution is a mix of 2 parts milk:water = 8:1 and 1 part only water.
Using concentration of milk, we get
\(\frac{2}{1} = \frac{0 - Cavg}{Cavg - 8/9}\)
\(Cavg = \frac{16}{27}\) = Milk concentration in final solution

So if cost is 16, selling price is 27 which means profit is 11/16

Then ratio of profit percentages is 2/16 : 11/16 = 2:11

Answer (A)

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