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A producer of rice mixes two varieties of rice from two fields one costing Rs 18 per kg and another Rs 20 per kg in the ratio 5 : 3. If he sells the mixed variety at Rs 21 per kg, then his gain percent is
  • a)
    12%
  • b)
    13%
  • c)
    14%
  • d)
    15%
  • e)
    None of these
Correct answer is option 'A'. Can you explain this answer?
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Given:
Cost of variety 1 = Rs 18 per kg
Cost of variety 2 = Rs 20 per kg
Ratio of variety 1 to variety 2 = 5 : 3
Selling price of mixed variety = Rs 21 per kg

To Find: Gain percent

Solution:
Let us assume that the producer mixes 5 kg of variety 1 with 3 kg of variety 2.

Cost price of 5 kg of variety 1 = 5 × 18 = Rs 90
Cost price of 3 kg of variety 2 = 3 × 20 = Rs 60
Total cost price of mixed variety = Rs 150

Selling price of 8 kg of mixed variety = 8 × 21 = Rs 168

Profit = Selling price - Cost price = 168 - 150 = Rs 18

Gain percent = (Profit / Cost price) × 100
Gain percent = (18 / 150) × 100
Gain percent = 12%

Therefore, the gain percent for the producer is 12%.
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