Question

Sipho buys peanut in a bulk at R5/kg and sells them in 100g packets for R1 each.His aunt owns a packaging business and supplies Sipho with free packets,for packaging the peanuts .(Write Sipho's rate per 100g packet.

Answer 1

Sipho buys 1 kg of peanuts at R 5. This means that for 1000 grams (1000 grams is equivalent to 1 kg) Sipho is paying R 5.

Now, this means that for each 100 grams Sipho is paying $\frac{5}{1000}\times 100=0.5$. Which means he is paying R 0.5.

It has also been given that Sipho sells 100 g packets (the packets cost nothing to Sipho as he gets them from the packaging business of his aunt who supplies the packets for free to Sipho) in R 1 each.

Thus the rate at which Sipho is making a profit per 100 g packet is:

$Selling Price-Cost Price=R 1-R 0.5=R 0.5$

Thus, Sipho's profit rate is R 0.5 per 100 gram packet.