Question : What proportion of water must be mixed with milk so that selling the mixture at cost price results in a 20% profit?
Option 1: 1 : 5
Option 2: 4 : 1
Option 3: 5 : 1
Option 4: 1 : 1
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Correct Answer: 1 : 5
Solution :
Given: Water to be added with milk to gain 20%.
Profit percentage = 20
Let the cost price of 1 litre of milk be Re. 1.
So, the cost price of the mixture = $\frac{100}{120}$ = Rs. $\frac{5}{6}$
The cost price of water = Rs. 0
Using the alligation method we get,
The required ratio = $\frac{1}{6}$ : $\frac{5}{6}$ = 1 : 5
Hence, the correct answer is 1 : 5.
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