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Re: How much water should the milkman add to milk purchased [#permalink]
05 Nov 2012, 11:02

1

This post received 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.

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

Re: How much water should the milkman add to milk purchased [#permalink]
11 Jul 2013, 13:47

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
_________________

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

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

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.

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'.

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.
_________________