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.33 per litre so as to make a profit of 30% on cost when he sells the resulting milk and water mixture for Rs.36 In what ratio should he mix the water and milk? Pick one:
A) 1:20 B) 23:120 C) 1:8 D) 1:4 E) 6:11
water = w (liter)   Milk = m (liter)   ==&gt; Cost = Price x Quantity = 0.33m   ==&gt; Revenue = Price x Quantity = 0.36(m + w)   ==&gt; Profit =0.36(m+w) - 0.33m = 0.3*(0.33m)[30% of cost]   ==&gt; 0.36m + 0.36w - 0.33m = 0.099m   ==&gt; 0.069m = 0.36w   ==&gt; m/w = 0.36/0.069 = 120/23   --OR--   w/m = 23/120   23:120 is correct.
<result>B</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.33 per litre so as to make a profit of 30% on cost when he sells the resulting milk and water mixture for Rs.36 In what ratio should he mix the water and milk?