A milkman has 20 litres of milk. He mixes 5 litres of water, which is freely available, with 20 litres of pure milk. If the cost of pure milk is Rs. 18 per litre and he sells the entire mixture at the cost price of pure milk, what is his profit percentage?
A
20%
B
25%
C
33.33%
D
18%
Correct Option:
B
Explanation
20 L of milk costs 20 × ₹18 = ₹360. Adding 5 L of free water gives 25 L of mixture. Selling 25 L at ₹18 per litre gives ₹450, so the profit is ₹90. Therefore, 90/360 × 100 = 25%.
