Weighted average purchase price per kg: Mumbai procures wheat as follows: 1200 kg at ₹30/kg from Nasik, 1500 kg at ₹25/kg from Ratnagiri, and 2000 kg at ₹32/kg from Kolhapur. What is the average cost per kg?

Difficulty: Medium

Correct Answer: ₹ 29.25 per kg

Explanation:


Introduction / Context:
This is a weighted average of prices with different quantities bought at different rates.


Given Data / Assumptions:

  • 1200 kg @ ₹30/kg
  • 1500 kg @ ₹25/kg
  • 2000 kg @ ₹32/kg


Concept / Approach:
Weighted average price = (sum of (quantity * price)) / (total quantity).


Step-by-Step Solution:
Total cost = 1200*30 + 1500*25 + 2000*32= 36000 + 37500 + 64000 = 137500Total quantity = 1200 + 1500 + 2000 = 4700 kgAverage price = 137500 / 4700 ≈ ₹29.25 per kg


Verification / Alternative check:
The result is between ₹25 and ₹32 and slightly biased upward due to a large 2000 kg at ₹32; ₹29.25 is consistent.


Why Other Options Are Wrong:
₹29, ₹29.50, ₹29.75, ₹28.90 are not the exact weighted average from the given quantities and rates.


Common Pitfalls:
Averaging the prices (simple mean) instead of using quantity weights.


Final Answer:
₹ 29.25 per kg

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