Mixing Teas for Profit: A 25% Return

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In summary, the tea importer mixes tea at a ratio of 2:3 for the less expensive tea to the more expensive tea.
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A tea importer mixes tea bought at £5.20/kg with tea at £5.60/kg. He sells this blend at £6.80/kg making a profit of 25% on his cost price. In what ratio does he mix the teas?
 
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Hello and welcome to MHB, splodge! :D

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  • #3
Let's let $T_1$ be the amount of the less expensive tea in a kg of the mix and $T_2$ be the amount of the more expensive tea in a kg of the mix. So right away, we know:

\(\displaystyle T_1+T_2=1\tag{1}\)

Now, if the seller is making a 25% profit, then his cost is \(\displaystyle \frac{4}{5}\) of the selling price, and so we may write:

\(\displaystyle 5.2T_1+5.6T_2=0.8\cdot6.8=5.44\)

Multiplying through by 12.5, we have

\(\displaystyle 65T_1+70T_2=68\tag{2}\)

Multiplying (1) by 65 and then subtracting it from (2), we get:

\(\displaystyle 5T_2=3\implies T_2=\frac{3}{5}\implies T_1=\frac{2}{5}\)

And so we find:

\(\displaystyle T_1:T_2=2:3\)
 

1. What is the concept behind "Mixing Teas for Profit: A 25% Return"?

The concept behind "Mixing Teas for Profit: A 25% Return" is to create unique and profitable tea blends by combining different types of teas and incorporating marketing techniques to attract customers.

2. Do I need to have a background in tea making to benefit from this book?

No, this book is designed for both beginners and experienced tea makers. It provides step-by-step instructions and tips for creating successful tea blends.

3. How can I ensure a 25% return on my tea blends?

The book provides strategies and techniques for pricing your tea blends to ensure a 25% profit margin. It also discusses ways to market and promote your blends to attract customers and increase sales.

4. Will this book cover the business aspect of selling tea blends?

Yes, "Mixing Teas for Profit: A 25% Return" includes information on the business side of selling tea blends, such as budgeting, inventory management, and creating a brand for your blends.

5. Are there any specific tea blends that are recommended for maximum profit?

The book discusses various tea blends that have been successful in the market and provides tips for creating unique and profitable blends. However, the ultimate success of a blend depends on factors such as market demand, pricing, and marketing strategies.

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