Oil equal to 20% of the weight of ground nut is extracted in a mill. The matter left after extraction is sold as cattle feed at the rate of Rs 12.5/kg. The groundnuts are bought at Rs 20/kg. The processing cost is Rs 5/kg. At what price (Rs per kg) should the oil be sold to earn 20% profit on total costs (Total cost = Cost of groundnuts and Processing costs)?
Now let us assume we bought 10Kg groundnutsÂ
so Cost = 200
Processing cost =50
Total cost = 250
Now to make 20% profit
S.P =300
Now oil extracted = 2Kg
Remaining 8Kg sold at 12.5/Kg so Money earned =100
Now we have to earn 200 using 2Kg oil
so it should be sold at 200/2 = 100
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