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A dishonest person wants to make a profit on the selling of [#permalink]

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02 Oct 2013, 17:32

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A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33 $ per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for 36$. In what ratio should he mix the water and milk? (A)1:20 (B) 1:10 (C) 1:8 (D)1:4 (E)1:2

A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33 $ per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for 36$. In what ratio should he mix the water and milk? (A) 1:20 (B) 1:10 (C) 1:8 (D) 1:4 (E) 1:2

Dear guerrero25, I'm happy to help with this.

First of all, let's consider 1 liter of the stuff he is going to sell --- naive customers think it's pure milk, but we know it's some milk-water mixture. He is going to sell this liter of milk-water for $36.

This $36 should be a 20% increase over cost. Here, we need to think about percentage increases as multipliers. See this blog for more info: http://magoosh.com/gmat/2012/understand ... -the-gmat/ Using multipliers (cost)*1.20 = $36 cost = 36/1.2 = 360/12 = $30

If he wants a 20% increase over cost on the sale of one liter of his milk-water, the cost has to be $30.

Well, a liter of milk costs $33, so if he is going to use just $30 of milk in his mixture, that's 30/33 = 10/11 of a liter. If milk is 10/11 of the liter, then water is 1/11 of the liter, and the ratio of water to milk is 1:10. Answer choice (B)

Does all this make sense? Mike
_________________

Mike McGarry Magoosh Test Prep

Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)

Re: A dishonest person wants to make a profit on the selling of [#permalink]

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02 Oct 2013, 20:51

mikemcgarry wrote:

guerrero25 wrote:

A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33 $ per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for 36$. In what ratio should he mix the water and milk? (A) 1:20 (B) 1:10 (C) 1:8 (D) 1:4 (E) 1:2

Dear guerrero25, I'm happy to help with this.

First of all, let's consider 1 liter of the stuff he is going to sell --- naive customers think it's pure milk, but we know it's some milk-water mixture. He is going to sell this liter of milk-water for $36.

This $36 should be a 20% increase over cost. Here, we need to think about percentage increases as multipliers. See this blog for more info: http://magoosh.com/gmat/2012/understand ... -the-gmat/ Using multipliers (cost)*1.20 = $36 cost = 36/1.2 = 360/12 = $30

If he wants a 20% increase over cost on the sale of one liter of his milk-water, the cost has to be $30.

Well, a liter of milk costs $33, so if he is going to use just $30 of milk in his mixture, that's 30/33 = 10/11 of a liter. If milk is 10/11 of the liter, then water is 1/11 of the liter, and the ratio of water to milk is 1:10. Answer choice (B)

Does all this make sense? Mike

Great solution, as always Mike! Thank you
_________________

A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33 $ per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for 36$. In what ratio should he mix the water and milk? (A)1:20 (B) 1:10 (C) 1:8 (D)1:4 (E)1:2

Re: A dishonest person wants to make a profit on the selling of [#permalink]

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26 May 2016, 10:33

mikemcgarry wrote:

guerrero25 wrote:

A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33 $ per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for 36$. In what ratio should he mix the water and milk? (A) 1:20 (B) 1:10 (C) 1:8 (D) 1:4 (E) 1:2

Dear guerrero25, I'm happy to help with this.

First of all, let's consider 1 liter of the stuff he is going to sell --- naive customers think it's pure milk, but we know it's some milk-water mixture. He is going to sell this liter of milk-water for $36.

This $36 should be a 20% increase over cost. Here, we need to think about percentage increases as multipliers. See this blog for more info: http://magoosh.com/gmat/2012/understand ... -the-gmat/ Using multipliers (cost)*1.20 = $36 cost = 36/1.2 = 360/12 = $30

If he wants a 20% increase over cost on the sale of one liter of his milk-water, the cost has to be $30.

Well, a liter of milk costs $33, so if he is going to use just $30 of milk in his mixture, that's 30/33 = 10/11 of a liter. If milk is 10/11 of the liter, then water is 1/11 of the liter, and the ratio of water to milk is 1:10. Answer choice (B)

Does all this make sense? Mike

Approached this question as follows -

He needs to make a profit of 20%, which means he needs to sell the milk +water combination for 39.6 (20% of 33 +33) Now, he plans to sell 1 liter of this solution of milk and water for 36. which means he needs to sell 1.1 liters of this solution to earn 39.6. (36 for 1 liter and so 39.6 for 1.1 liters)

Hence the water added would be .1 liter.

Therefore the ratio of water to milk is .1/1 = 1/10

Please suggest if this approach is correct. Thanks

A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33 $ per litre so as to make a profit of 20% on cost when he sells the resulting milk and water mixture for 36$. In what ratio should he mix the water and milk? (A)1:20 (B) 1:10 (C) 1:8 (D)1:4 (E)1:2

Re: A dishonest person wants to make a profit on the selling of [#permalink]

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