A tea merchant blends two varieties of tea in the ratio of 5 : 4. The cost of first variety is Rs 200 per kg and that of second variety is Rs 300 per kg. If he sells the blended tea at the rate of Rs 275 per kg, find out the percentage of her profit or loss.
Given, ratio of blended two varieties of tea = 5:4
And cost of green tea = 200 per kg
And cost of lemon tea = 300 per kg
SP of blended tea = 275 per kg
⇒ Let green tea be 5x kg and lemon be 4x kg
⇒ Cost of lemon tea = 4x × 300 = 1200x
⇒ Cost of green tea = 5x × 200 = 1000x
⇒ Total CP = 1000x + 1200x = 2200x
⇒ Total quantitiy = 4X + 5X = 9X
∴ SP of blended tea = 275 × 9x = 2475x
∵ CP <SP
So, there is profit on blended tea
⇒ Profit = SP-CP
= 2475x – 2200x = 275x
⇒ Profit% = 
× 100%
= 
× 100%
= 
= 12.5%
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