The costs of flour and sugar are #1.40 and #1.60 respectively. To prepare cake the two items are mixed in the ratio 2:3, and the mixture is then sold at #2.40 per kg. Find the gain or loss per cent
Since they are mixed in the ratio of 2:3, then let us work with 5 kg mix( 2 + 3 = 5).
Cost of mix is: 2*1.40 + 3*1.60 = 2.80 + 4.80 = 7.60
Income from sale = 5*2.40 = 12.00
Profit = Income – Cost = 12.00 – 7.60 = 4.40 gain
Percentage gain = Profit/Cost = 4.40/7.60 = 0.5789
Answer: Profit = 57.9% gain