# Oil equal to 20% of the weight of ground nut is extracted in a mill. T

| Oil equal to 20% of the weight of ground nut is extracted in a mill. The matter left after extraction is sold as cattle feed at the rate of Rs 12.5/kg. The groundnuts are bought at Rs 20/kg. The processing cost is Rs 5/kg. At what price (Rs per kg) should the oil be sold to earn 20% profit on total costs (Total cost =Cost of groundnuts and Processing costs)?

A. 250

B. 150

C. 200

D. 100

### Right Answer is: D

#### SOLUTION

Let the weight of ground nut be 10 kg.

Quantity of oil = 10 × 20/100 = 2 kg

The matter left after extraction = 10 – 2 = 8 kg

Total C.P. of ground nut = 20 × 10 + 5 × 10 (Processing costs)

= 250 Rs.

Total S.P. should be = 250 × 120/100 = 300

He sold extracted matter = 8 × 12.5 = 100 Rs.

So he need to sell oil = (300 – 100)/2 = Rs. 100 per kg.

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Oil equal to 20% of the weight of ground nut is extracted in a mill. T