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Question
In what proportion water must be added to spirit to gain 20% by selling it at the cost price?
Options:
A .  1:5
B .  1:6
C .  1:8
D .  1:7
Answer: Option A

Since first second varieties are mixed in equal proportions, so their average price = Rs.(126+135)/2= Rs.130.50 So, Now the mixture is formed by mixing two varieties, one at Rs. 130.50 per kg and the other at say Rs. 'x' per kg in the ratio 2 : 2, i.e., 1 : 1. We have to find 'x'.   Cost of 1 kg tea of 1st kind         Cost of 1 kg tea of 2nd kind         x-153/22.50 = 1  => x - 153 = 22.50  => x=175.50.  Hence, price of the third variety = Rs.175.50 per kg.



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