Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
02 Oct 2013, 17:32
Kudos
Bookmarks
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
69% (02:21) correct
31%
(02:45)
wrong
based on 527
sessions
History
Date
Time
Result
Not Attempted Yet
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) 1:20
(B) 1:10
(C) 1:8
(D) 1:4
(E) 1:2
02 Oct 2013, 20:47
Kudos
Bookmarks
guerrero25
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:
https://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
27 Jan 2015, 22:28
Kudos
Bookmarks
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 \(= \frac{\frac{3}{33}}{\frac{30}{33}} = \frac{3}{30} = \frac{1}{10}\)
Answer = B
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 \(= \frac{\frac{3}{33}}{\frac{30}{33}} = \frac{3}{30} = \frac{1}{10}\)
Answer = B
