Premium Grade olive oil is priced at Rs. 240 per liter, whereas Regular Grade olive oil sells for Rs. 160 per liter. If Premium Grade and Regular Grade olive oil are mixed in a ratio of 3:1, what is the cost per liter of the resulting mixture?

The correct answer is ₹220.

Step 1: Identify the given values
Cost of Premium Grade olive oil = Rs. 240 per liter
Cost of Regular Grade olive oil = Rs. 160 per liter
Mixing ratio of Premium Grade to Regular Grade = 3 : 1

Step 2: Calculate the total cost for the mixture
Assume 3 liters of Premium Grade olive oil are mixed with 1 liter of Regular Grade olive oil.
Total volume of the mixture = 3 + 1 = 4 liters.

Cost of 3 liters of Premium Grade oil = 3 × 240 = Rs. 720

Cost of 1 liter of Regular Grade oil = 1 × 160 = Rs. 160

Total cost of 4 liters of the mixture = 720 + 160 = Rs. 880

Step 3: Find the cost per liter of the resulting mixture
We divide the total cost by the total volume of the mixture:

$\text{Cost per liter}=\frac{\text{Total Cost}}{\text{Total Quantity}}$

$\text{Cost per liter}=\frac{880}{4}=220$

Therefore, the cost per liter of the mixture is ₹220.