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?
-
A₹ 12.50
-
B₹ 6.25
-
C₹ 8
-
D₹ 10
-
E₹ 9.50
Answer
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