Cost build for a cup of coffee — Coffee powder packet costs ₹ 20 and makes 10 cups. Milk costs ₹ 30 per litre; each cup uses 200 ml. If the seller targets a 25% profit on total cost, what should be the selling price per cup?

Difficulty: Easy

Correct Answer: ₹ 10

Explanation:


Introduction / Context:
This kitchen arithmetic problem combines a fixed-quantity ingredient (the coffee packet) and a variable ingredient (milk per cup). We compute the total cost for 10 cups, apply the desired profit, and divide by cups to get the per-cup selling price.


Given Data / Assumptions:

  • Coffee packet = ₹ 20 and yields 10 cups ⇒ coffee cost per cup = ₹ 2.
  • Milk = ₹ 30/litre = ₹ 0.03/ml.
  • Milk per cup = 200 ml ⇒ milk cost per cup = 200 * 0.03 = ₹ 6.
  • Total cups = 10.


Concept / Approach:
Total cost for 10 cups = coffee packet cost + milk cost for 10 cups. Apply 25% profit on this total to get required total revenue; then divide by 10.


Step-by-Step Solution:

Milk for 10 cups = 200 ml * 10 = 2000 ml = 2 litres ⇒ cost = 2 * 30 = ₹ 60.Coffee packet cost = ₹ 20 ⇒ Total cost = 20 + 60 = ₹ 80.Required revenue = 80 * 1.25 = ₹ 100 for 10 cups.SP per cup = 100 / 10 = ₹ 10.


Verification / Alternative check:
Per cup cost = ₹ 8; adding 25% gives ₹ 10, exactly matching the result.


Why Other Options Are Wrong:
₹ 12.50 overshoots 25%; ₹ 6.25 and ₹ 8 ignore profit; ₹ 9.50 underprices the target margin.


Common Pitfalls:
Forgetting to convert millilitres to litres for milk pricing, or splitting the coffee packet cost incorrectly across cups.


Final Answer:
₹ 10

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