Cost of a packet of coffee powder and a litre of milk are ₹ 20 and ₹ 30 respectively. 10 cups of coffee is made with one packet coffee powder and for each cup 200 ml of milk is used. If coffee is sold at 25% profit, the selling price of each cup of coffee is

₹ 12.50
₹ 6.25
₹ 8
₹ 10

Correct Answer: ₹ 10

Explanation:

Cost of coffee powder used in one cup = 20/10 = ₹ 2
Cost of milk used in one cup = (30/1000) x 200 = ₹ 6
∴ Cost of each cup coffee = 2 + 6 = ₹ 8
To gain 25% profit, sale price of each cup of coffee = 125% of 8 = ₹ 10

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