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

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Senior Manager
Joined: 10 Apr 2012
Posts: 276
Location: United States
Concentration: Technology, Other
GPA: 2.44
WE: Project Management (Telecommunications)
A dishonest person wants to make a profit on the selling of [#permalink]

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02 Oct 2013, 17:32
2
10
00:00

Difficulty:

45% (medium)

Question Stats:

70% (01:49) correct 30% (02:18) wrong based on 263 sessions

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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
Magoosh GMAT Instructor
Joined: 28 Dec 2011
Posts: 4668
Re: A dishonest person wants to make a profit on the selling of [#permalink]

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02 Oct 2013, 20:47
10
3
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 $30 of milk in his mixture, that's 30/33 = 10/11 of a liter. If milk is 10/11 of the liter, then water is 1/11 of the liter, and the ratio of water to milk is 1:10. Answer choice (B) Does all this make sense? Mike _________________ Mike McGarry Magoosh Test Prep Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939) Manager Status: Admitted to U of M Ross Joined: 01 Dec 2012 Posts: 94 Location: United States (TX) Concentration: Strategy, Entrepreneurship GMAT 1: 750 Q50 V42 GPA: 2.9 WE: Consulting (Consulting) Re: A dishonest person wants to make a profit on the selling of [#permalink] ### Show Tags 02 Oct 2013, 20:51 1 mikemcgarry wrote: guerrero25 wrote: A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33$ 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
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Vishnu

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SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1837
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: A dishonest person wants to make a profit on the selling of [#permalink]

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27 Jan 2015, 22:28
1
To achieve profit of 20% on "Pure Milk", its cost price should be $$= 36 * \frac{100}{120} = 30$$

However, given that cost price of "Pure Milk" = 33

1 litre "Pure Milk" is obtained in 33$, so "Pure Milk" obtained in 30$ $$= \frac{30}{33}$$

Water required to be added $$= 1 - \frac{30}{33}= \frac{3}{33}$$

Ratio of Water : Milk $$= \frac{\frac{3}{33}}{\frac{30}{33}} = \frac{3}{30} = \frac{1}{10}$$

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Joined: 02 Sep 2009
Posts: 46280
Re: A dishonest person wants to make a profit on the selling of [#permalink]

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05 May 2016, 00:55
Manager
Joined: 01 Mar 2014
Posts: 130
Schools: Tepper '18
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 $30 of milk in his mixture, that's 30/33 = 10/11 of a liter. If milk is 10/11 of the liter, then water is 1/11 of the liter, and the ratio of water to milk is 1:10. Answer choice (B) Does all this make sense? Mike Approached this question as follows - He needs to make a profit of 20%, which means he needs to sell the milk +water combination for 39.6 (20% of 33 +33) Now, he plans to sell 1 liter of this solution of milk and water for 36. which means he needs to sell 1.1 liters of this solution to earn 39.6. (36 for 1 liter and so 39.6 for 1.1 liters) Hence the water added would be .1 liter. Therefore the ratio of water to milk is .1/1 = 1/10 Please suggest if this approach is correct. Thanks Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 8102 Location: Pune, India Re: A dishonest person wants to make a profit on the selling of [#permalink] ### Show Tags 26 May 2016, 20:37 2 1 guerrero25 wrote: A dishonest person wants to make a profit on the selling of milk. He would like to mix water (costing nothing) with milk costing 33$ 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 You can also use weighted averages. Selling cost is$36 with profit of 20%.

Cost Price * 6/5 = $36 Cost Price =$30

Ww/Wm = (33 - 30)/(30 - 0) = 1/10 (Using weighted average formula discussed here: http://www.veritasprep.com/blog/2011/03 ... -averages/)

Put 1 part water for every 10 parts of milk. Answer (B)
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Joined: 20 Oct 2014
Posts: 5
Re: A dishonest person wants to make a profit on the selling of [#permalink]

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21 Aug 2016, 11:28
11 x 36 = 10 x 33 x 1.2

so...

1:10
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Joined: 09 Sep 2013
Posts: 7022
Re: A dishonest person wants to make a profit on the selling of [#permalink]

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01 Oct 2017, 12:33
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Re: A dishonest person wants to make a profit on the selling of   [#permalink] 01 Oct 2017, 12:33
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