Correct option is C
Given:
- A milkman mixes water with milk to gain a 25% profit by selling the mixture at the cost price.
Formula Used:
To gain a profit of 25%, the milkman is selling the mixture at 125% of the cost price.
This means the effective cost price of the mixture is 100% (the cost of milk alone) and the selling price is 125%.
The formula to calculate the ratio of water to milk is:
(Profit% =× 100)
Solution:
Let the cost price of 1 liter of milk be ₹ 1. Since the milkman gains a 25% profit, the selling price of the mixture is ₹ 1.25 per liter.
Let the amount of milk be x liters. The milkman then adds 0.25x liters of water to make a mixture of 1.25x liters.
To find the ratio of water to milk:
So, the ratio of water to milk is 1:4.
The ratio of water to milk in the mixture is 1:4.