Mixing Profits: How Many Litres of Water to Add to Milk for a 20% Profit

Understanding the principles behind profit and loss calculations in the context of mixing liquids is crucial for many industries, especially in food and beverages. This article explores how to achieve a 20% profit by adding water to milk, breaking down the steps and calculations involved.

Introduction to Profit and Loss in Liquid Mixtures

When selling a mixture of different ingredients, the cost price and the selling price play critical roles in determining profitability. For this scenario, we have 25 litres of milk at a cost of Rs 12 per litre. To sell this mixture at the cost price and still make a 20% profit, we need to follow a systematic approach.

Step-by-Step Analysis

1. Calculate the Cost of the Milk

The first step is to determine the total cost of the 25 litres of milk:

300 25 litres times; Rs 12 per litre

2. Determine the Selling Price for a 20% Profit

To achieve a 20% profit, the selling price (SP) should be:

SP Cost Price 20% of Cost Price Rs 300 20% of Rs 300 Rs 360

3. Determine the Cost Price of the Mixture

Letset x be the number of litres of water to be added. The total volume of the mixture becomes 25 x litres. Since water has a cost of Rs 0, the cost price of the mixture remains Rs 300.

4. Set Up the Equation

The selling price of the mixture must equal the cost price to achieve the desired profit of 20%:

360 12 times; (25 x)

Since the selling price per litre should be Rs 12, we set up the equation as follows:

360 12 times; (25 x)

Divide both sides by 12:

30 12x 360

Subtract 300 from both sides:

12x 60

Determine the value of x:

x 60 / 12 5 litres

Conclusion

By adding 5 litres of water to 25 litres of milk, the mixture can be sold at Rs 12 per litre to achieve a 20% profit. This mathematically-backed solution ensures that the cost price and the selling price align, making the problem straightforward and the profit clear.

Practical Application

This type of profit calculation is not only useful for milk but can be applied to various products where liquids are mixed. Whether in the food industry or another field, understanding how to derive profit through careful calculation is a valuable skill.

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By mastering these calculations, businesses can optimize their inventory management and pricing strategies, ensuring profitability and meeting consumer expectations.