A company bought a load of water-damaged copy paper, estimating that 2/3 of the reams could be slavaged, in which case the cost per salvageable ream would be $0.72. If it later turned out that 3/4 of reams were salvageable, then what was the actual cost per salvageable ream ?
.72 * 2/3 = 48 to get what each ream would cost if they were all salvageable.
48 * 4/3 = 64 to get the answer.
Your answer is right. But still I am unable to see it !!
A detailed explanation plz !!
Let C = cost of the reams
Let R = original number of reams.
C = (2/3)R * .72 [Cost = number of good reams x cost per good ream]
C = (3/4)R * X [Cost = number of good reams x cost per good ream]
The "cost" of the paper is the same in both cases so:
(2/3)R * .72 = (3/4)R * X
Now solve for X.
X = (2/3)(4/3)* .72 = .64.
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993