Initially (2*33 + 1*24)/(2+1) = 30p a gm So, cost for 100g = 100*30 = 3000p Later, (1*33 + 2*24)/(1+2) = 71/3 p a gm. So, cost for 100g = 100*(71/3) = 2366.67p He saves 3000 – 2366.67 = 633.33p Concept of weighted average. Reply
Initially (2*33 + 1*24)/(2+1) = 30p a gm
So, cost for 100g = 100*30 = 3000p
Later, (1*33 + 2*24)/(1+2) = 71/3 p a gm.
So, cost for 100g = 100*(71/3) = 2366.67p
He saves 3000 – 2366.67 = 633.33p
Concept of weighted average.