A dishonest milkman wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing Rs.46 per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for Rs.54 In what ratio should he mix the water and milk? Choose the correct choice from the following answers:
A) 1:20
B) 1:10
C) 1:8
D) 1:45
E) 6:11
water = w (liter)   Milk = m (liter)   ==&gt; Cost = Price x Quantity = 0.46m   ==&gt; Revenue = Price x Quantity = 0.54(m + w)   ==&gt; Profit =0.54(m+w) - 0.46m = 0.2*(0.46m)[20% of cost]   ==&gt; 0.54m + 0.54w - 0.46m = 0.092m   ==&gt; 0.012m = 0.54w   ==&gt; m/w = 0.54/0.012= 
<gadget id="calculator">0.54/0.012</gadget>
<output>45</output>
45   --OR--   w/m= 1/45   1:45 is correct.
<result>D</result>
A dishonest milkman wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing Rs.46 per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for Rs.54 In what ratio should he mix the water and milk?