Difficulty: Medium
Correct Answer: 11 1/9 % gain
Explanation:
Introduction / Context:This is a mixture pricing problem with equal counts. Compute total cost from the two purchase rates, then the selling revenue at a single mixed rate, and finally compare for gain or loss percentage on total cost.
Given Data / Assumptions:
Concept / Approach:Total cost = n(0.25) + n(0.20) = 0.45n. Total oranges = 2n. Total revenue at 0.25 each = 0.50n. Profit% = (Revenue − Cost)/Cost * 100.
Step-by-Step Solution:Total cost = 0.45nTotal revenue = 0.50nProfit = 0.05nProfit% = (0.05n) / (0.45n) * 100 = 11.111...% = 11 1/9 % gain
Verification / Alternative check:Choose n = 20. Cost = 9; revenue = 10; profit = 1; profit% = 1/9 * 100 = 11.11%.
Why Other Options Are Wrong:Loss options are invalid since revenue exceeds cost; 12 1/2% is higher than the exact fraction 1/9.
Common Pitfalls:Using an average of rates instead of computing exact totals; forgetting counts are equal (not costs).
Final Answer:11 1/9 % gain
Discussion & Comments