Question

Mix fruit juice is made by the combination of four fruits orange, pomegranate, carrot and litchi mixed in the ratio of 3:4:5:6 respectively. If due to seasonal changes we have some respective changes in their cost of +10%, -20%, -30% and 40%, what would be the percentage change in the cost of juice.

Answer 1

The cost of the juice will increase by 5%. This is calculated by adding the percentage changes of each of the four components of the juice: 3% (-20% + 40%), 4% (+10% -30%), 5% (+10% -30%) and 6% (+10% -20%). The total percentage change is 3 + 4 + 5 + 6 = 18%, which is 5% of the original cost.

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