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Question

A dishonest milkman a buys 100 liters of milk from another dishonest milkman B for onward distribution. He retains 10 liter of milk for personal use, adds water to make up the shortfall and sells the mixture at Rs. 15 /liter, there by making a profit of Rs. 2.75 /liter on the quantity sold. If B had already diluted the milk with water in the ratio of milk : water 9:1 and he makes a profit of Rs. 1, the price per liter of pure milk purchased by B is closest to?

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Solution

A taken milk from B =100 liters
B has milk and water in 9:1 ratio i.e. B sold 90 liters milk and 10 liters water to A instead of 100 liters milk.
A retain milk =10 liters (9 liters milk and 1 liters water)
Now, A has 90 liters milk (81 liters milk and 9 liters water) to sell and he has to add 10 liters more water to make milk 100 liters (81 milk + 19 water )
B sells 15 per/L with Rs. 2.75 profit.
So, cost price of A =152.75= Rs. 12.25
Cost price of A for pure milk (90) L =100×12.2590= Rs. 13.61 per liter.

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