(5 marks) Question 3
A coffee Merchant is selling a blend of two grades coffee at a mark-up of 32% on cost. If the
blend contains 1000 Kgs of grade A Coffee bought at K500 per kg and 1,200 kgs of grade B
Coffee bought at K400 per kg,
(a) What is the Coffee blend's selling price?
(b) How much profit does he make if he sells 75% of the blend in the given month?
(Hint: Ignore selling, distribution and administrative expenses).
(c) What is the month's closing value of the merchant's coffee inventory?
(15 marks)​