Question

A trader mixes 2kg of butter which costs $8 per kg with 3kg of butter which costs $6 per kg. He sells the mixture at $2.55 per 250g. Express his profit as a percentage of her selling price.

Answer 1

33.33%

Explanation:

2kg of butter which costs $8 per kg: $16 for 2kg

3kg of butter which costs $6 per kg: $18 for 3kg

The final product has a total of 5 kg and cost the trader $34: $6.80/kg cost

Selling Price: $2.55 per 250g or $10.20 per 1 kg

There are 5kg, so if all was sold the total income would be: (5kg)*($10.20/kg) = $51.

Total Profit = $51 - $34 = $17 profit

Profit as a percentage of Selling Price = ($17/$51) = 33.33%