Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 05 May 2015, 21:47

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# How much water should the milkman add to milk purchased

Author Message
TAGS:
Intern
Joined: 01 Jan 2012
Posts: 44
Location: United States
Concentration: Marketing, Technology
GMAT 1: Q42 V32
GMAT 2: 0 Q50 V35
GPA: 3.6
Followers: 1

Kudos [?]: 35 [1] , given: 5

How much water should the milkman add to milk purchased [#permalink]  03 Nov 2012, 07:46
1
KUDOS
4
This post was
BOOKMARKED
00:00

Difficulty:

75% (hard)

Question Stats:

42% (01:00) correct 58% (01:09) wrong based on 234 sessions
How much water should the milkman add to milk purchased by him for $20/- to get 50% profit? (1) He has 1 litre of milk. (2) He wishes to sell the diluted milk at$25 a litre.
[Reveal] Spoiler: OA
Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 2362
Followers: 708

Kudos [?]: 2922 [3] , given: 38

Re: How much water should the milkman add to milk purchased [#permalink]  05 Nov 2012, 11:02
3
KUDOS
Expert's post
monikaleoster wrote:
How much water should the milkman add to milk purchased by him for $20/- to get 50% profit? (1) He has 1 litre of milk. (2) He wishes to sell the diluted milk at$25 a litre.

I marked A. can anyone explain Why it is wrong

I'm happy to help with this.

Suppose we know only (A) ----- we know he bought 1 liter of milk for $20. We know he wants a 50% profit, which means making$30 in sales. What we don't know is how much he will charge for the milk he sells. If he sells the milk for $30/L, then he doesn't have to add any water, and he will make a 50%. If he sells the milk at$60/L, he could drink half of it, and sell the other half and still reap a 50% profit. I think you were assuming that the buying price and the selling price were the same ---- it would be very good preparation for your future, getting an MBA and after, to recognize that these two seldom are the same.

We need to know both how much milk and selling price, in order to answer the question. That's why (C) is the answer.

Does all this make sense?

Mike
_________________

Mike McGarry
Magoosh Test Prep

Manager
Joined: 14 Jan 2013
Posts: 157
Concentration: Strategy, Technology
GMAT Date: 08-01-2013
GPA: 3.7
WE: Consulting (Consulting)
Followers: 3

Kudos [?]: 93 [0], given: 29

Re: How much water should the milkman add to milk purchased [#permalink]  10 Jul 2013, 19:52
mikemcgarry wrote:
monikaleoster wrote:
How much water should the milkman add to milk purchased by him for $20/- to get 50% profit? (1) He has 1 litre of milk. (2) He wishes to sell the diluted milk at$25 a litre.

I marked A. can anyone explain Why it is wrong

I'm happy to help with this.

Suppose we know only (A) ----- we know he bought 1 liter of milk for $20. We know he wants a 50% profit, which means making$30 in sales. What we don't know is how much he will charge for the milk he sells. If he sells the milk for $30/L, then he doesn't have to add any water, and he will make a 50%. If he sells the milk at$60/L, he could drink half of it, and sell the other half and still reap a 50% profit. I think you were assuming that the buying price and the selling price were the same ---- it would be very good preparation for your future, getting an MBA and after, to recognize that these two seldom are the same.

We need to know both how much milk and selling price, in order to answer the question. That's why (C) is the answer.

Does all this make sense?

Mike

Mike,

Do you think this is real gmat Question as it has too many assumptions in DS ?
_________________

"Where are my Kudos" ............ Good Question = kudos

"Start enjoying all phases" & all Sections

__________________________________________________________________
http://gmatclub.com/forum/collection-of-articles-on-critical-reasoning-159959.html

percentages-700-800-level-questions-130588.html

700-to-800-level-quant-question-with-detail-soluition-143321.html

Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 2362
Followers: 708

Kudos [?]: 2922 [1] , given: 38

Re: How much water should the milkman add to milk purchased [#permalink]  11 Jul 2013, 13:47
1
KUDOS
Expert's post
Mountain14 wrote:
Mike,
Do you think this is real gmat Question as it has too many assumptions in DS ?

Dear Mountain14,
I think the framing of the question may be a little too folksy for the GMAT, but the substance of the question is perfectly legitimate. For example, the question could easily re-phrased in terms of some sort of obscure scientific liquid that a scientist is going to reduce and sell at a profit --- that would be very GMAT-like, and the principles of solution would be identical. We don't know to know anything about the liquid, its use or how to handle it, in order to answer a question about diluting it to achieve a certain profit. I think the only real assumption is that water is free, which seems like a quite reasonable assumption to make.
Does this make sense?
Mike
_________________

Mike McGarry
Magoosh Test Prep

Manager
Joined: 14 Jan 2013
Posts: 157
Concentration: Strategy, Technology
GMAT Date: 08-01-2013
GPA: 3.7
WE: Consulting (Consulting)
Followers: 3

Kudos [?]: 93 [0], given: 29

Re: How much water should the milkman add to milk purchased [#permalink]  11 Jul 2013, 18:14
mikemcgarry wrote:
Mountain14 wrote:
Mike,
Do you think this is real gmat Question as it has too many assumptions in DS ?

Dear Mountain14,
I think the framing of the question may be a little too folksy for the GMAT, but the substance of the question is perfectly legitimate. For example, the question could easily re-phrased in terms of some sort of obscure scientific liquid that a scientist is going to reduce and sell at a profit --- that would be very GMAT-like, and the principles of solution would be identical. We don't know to know anything about the liquid, its use or how to handle it, in order to answer a question about diluting it to achieve a certain profit. I think the only real assumption is that water is free, which seems like a quite reasonable assumption to make.
Does this make sense?
Mike

I got what you mean.... Thanks...
_________________

"Where are my Kudos" ............ Good Question = kudos

"Start enjoying all phases" & all Sections

__________________________________________________________________
http://gmatclub.com/forum/collection-of-articles-on-critical-reasoning-159959.html

percentages-700-800-level-questions-130588.html

700-to-800-level-quant-question-with-detail-soluition-143321.html

Math Expert
Joined: 02 Sep 2009
Posts: 27228
Followers: 4231

Kudos [?]: 41108 [0], given: 5666

Re: How much water should the milkman add to milk purchased [#permalink]  21 Aug 2013, 03:38
Expert's post
anamika7 wrote:
Its still not clear to me why c is the answer. Please can anyone provide a detailed explanation.

Please elaborate what didn't you understand in the solution. Thank you.
_________________
Intern
Joined: 03 May 2013
Posts: 3
Followers: 0

Kudos [?]: 0 [0], given: 25

Re: How much water should the milkman add to milk purchased [#permalink]  21 Aug 2013, 04:07
Following thing is not clear to me:
How can milkman earn 50% profit by selling at $60. I marked A as the answer. For option B: SP=$25. CP= $20. Profit will be only 25% . I do not have good understanding of mixture problems. So please explain how the two statements are together sufficient Manager Joined: 14 Mar 2013 Posts: 50 Location: United States Concentration: General Management, Leadership GMAT Date: 12-03-2013 WE: General Management (Retail) Followers: 0 Kudos [?]: 29 [1] , given: 119 Re: How much water should the milkman add to milk purchased [#permalink] 19 Nov 2013, 14:09 1 This post received KUDOS anamika7 wrote: Following thing is not clear to me: How can milkman earn 50% profit by selling at$60.
I marked A as the answer.
For option B: SP= $25. CP=$20. Profit will be only 25% .
I do not have good understanding of mixture problems. So please explain how the two statements are together sufficient

The question asks how much water should the milkman add to milk in order to get extra $10. He is not selling by$60, he paid $20 for X liters of milk and will sell Y liters of the mix milk+water to get$10 profit (50% of $20). To answer this, you need to know how much milk he has and for how much he is going to sell the mix of milk+water. Only 1 or only 2 is not enough to answer, but using 1 and 2 together we can answer the question. Intern Joined: 03 Aug 2013 Posts: 1 Followers: 0 Kudos [?]: 0 [0], given: 11 Re: How much water should the milkman add to milk purchased [#permalink] 06 Jan 2014, 19:02 mikemcgarry wrote: monikaleoster wrote: How much water should the milkman add to milk purchased by him for$20/- to get 50% profit?
(1) He has 1 litre of milk.
(2) He wishes to sell the diluted milk at $25 a litre. I marked A. can anyone explain Why it is wrong I'm happy to help with this. Suppose we know only (A) ----- we know he bought 1 liter of milk for$20. We know he wants a 50% profit, which means making $30 in sales. What we don't know is how much he will charge for the milk he sells. If he sells the milk for$30/L, then he doesn't have to add any water, and he will make a 50%. If he sells the milk at $60/L, he could drink half of it, and sell the other half and still reap a 50% profit. I think you were assuming that the buying price and the selling price were the same ---- it would be very good preparation for your future, getting an MBA and after, to recognize that these two seldom are the same. We need to know both how much milk and selling price, in order to answer the question. That's why (C) is the answer. Does all this make sense? Mike Hi Mike, As the price of water is not given, should we assume it as free of cost or should we opt option 'E'. Satish. Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 5459 Location: Pune, India Followers: 1337 Kudos [?]: 6796 [0], given: 177 Re: How much water should the milkman add to milk purchased [#permalink] 06 Jan 2014, 21:25 Expert's post satishv80 wrote: mikemcgarry wrote: monikaleoster wrote: How much water should the milkman add to milk purchased by him for$20/- to get 50% profit?
(1) He has 1 litre of milk.
(2) He wishes to sell the diluted milk at $25 a litre. I marked A. can anyone explain Why it is wrong I'm happy to help with this. Suppose we know only (A) ----- we know he bought 1 liter of milk for$20. We know he wants a 50% profit, which means making $30 in sales. What we don't know is how much he will charge for the milk he sells. If he sells the milk for$30/L, then he doesn't have to add any water, and he will make a 50%. If he sells the milk at \$60/L, he could drink half of it, and sell the other half and still reap a 50% profit. I think you were assuming that the buying price and the selling price were the same ---- it would be very good preparation for your future, getting an MBA and after, to recognize that these two seldom are the same.

We need to know both how much milk and selling price, in order to answer the question. That's why (C) is the answer.

Does all this make sense?

Mike

Hi Mike,

As the price of water is not given, should we assume it as free of cost or should we opt option 'E'.

Satish.

The intent of this question is clear - water costs nothing.
But, it is not specifically mentioned. An official question will mention "assume water is available free of cost". I have seen DS questions which specify the price of water too. Hence, I would not assume that water is available free of cost until and unless it is specifically mentioned.
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Veritas Prep GMAT course is coming to India. Enroll in our weeklong Immersion Course that starts March 29!

Veritas Prep Reviews

GMAT Club Legend
Joined: 09 Sep 2013
Posts: 4783
Followers: 296

Kudos [?]: 52 [0], given: 0

Re: How much water should the milkman add to milk purchased [#permalink]  09 Apr 2015, 00:07
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: How much water should the milkman add to milk purchased   [#permalink] 09 Apr 2015, 00:07
Similar topics Replies Last post
Similar
Topics:
A dishonest milkman sells a 40 liter mixture of milk and water that 0 17 Feb 2015, 10:18
6 A dishonest milkman sells a 40 liter mixture of milk and water that co 10 28 Jan 2015, 06:53
1 A milkman adds 5 liters of water to a certain quantity of 3 13 Mar 2008, 11:14
How much water (in grams) should be added to the 3 03 Jan 2008, 08:38
How much water (in grams) should be added to the 2 04 Nov 2007, 19:28
Display posts from previous: Sort by