GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 23 Oct 2019, 21:36

### 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

# A retailer adds freely available water to an orange concentrate

Author Message
TAGS:

### Hide Tags

Senior PS Moderator
Joined: 26 Feb 2016
Posts: 3332
Location: India
GPA: 3.12

### Show Tags

01 Mar 2018, 12:38
8
00:00

Difficulty:

65% (hard)

Question Stats:

54% (02:02) correct 46% (02:18) wrong based on 99 sessions

### HideShow timer Statistics

A retailer adds freely available water to an orange concentrate, costing $50 per liter, to prepare an orange drink. He sells the drink at$30 per liter and earns 50% profit on his investment. How many liters of water does he add to each liter of the orange concentrate?

A. 0.5
B. 0.60
C. 0.67
D. 1
E. 1.5

Source: Experts Global

_________________
You've got what it takes, but it will take everything you've got
VP
Joined: 07 Dec 2014
Posts: 1224

### Show Tags

01 Mar 2018, 15:30
1
1
1
pushpitkc wrote:
A retailer adds freely available water to an orange concentrate, costing $50 per liter, to prepare an orange drink. He sells the drink at$30 per liter and earns 50% profit on his investment. How many liters of water does he add to each liter of the orange concentrate?

A. 0.5
B. 0.60
C. 0.67
D. 1
E. 1.5

Source: Experts Global

sale price=1.5*$50=$75
$75/$30=2.5 liters sold
2.5 liters-1 liter oc=1.5 liters water added
E
Senior SC Moderator
Joined: 22 May 2016
Posts: 3581
Re: A retailer adds freely available water to an orange concentrate  [#permalink]

### Show Tags

01 Mar 2018, 17:11
pushpitkc wrote:
A retailer adds freely available water to an orange concentrate, costing $50 per liter, to prepare an orange drink. He sells the drink at$30 per liter and earns 50% profit on his investment. How many liters of water does he add to each liter of the orange concentrate?

A. 0.5
B. 0.60
C. 0.67
D. 1
E. 1.5

Source: Experts Global

Find cost from revenue, then volume from cost.

• Find cost from revenue
Suppose he sells 10 liters for $30 per liter. (10 *$30) = $300 Total revenue That revenue earns him 50% profit on his investment Revenue = 150% Cost = 1.5(Cost) 1.5(Cost) =$300
Cost =$$\frac{300}{1.5}$$=$200 • Liters of OJ used in mix sold? Cost =$200
Cost per liter of OJ = $50 Cost per liter of water =$0

$$\frac{TotalCost}{CostPerLiter} =$$ # of liters of OJ

For 10L of mix he used
$$\frac{200}{50}=4$$ liters of OJ concentrate

• Liters of water used in mix?
(10L mix - 4L OJ) = 6L of water used

• Liters of water added to liter of OJ to make mix?
Volume ratio is

$$\frac{Water}{OJ}=\frac{6}{4}=\frac{3}{2}=\frac{1.5}{1}=1.5$$ L of water per L of OJ

Alternatively, ONE liter sold.
Revenue = 1.5C
$30 = 1.5C Cost:$$\frac{30}{1.5} = 20$$ Volume of$20 worth of OJ at $$\frac{50}{L}$$
$$\frac{20}{50}=\frac{2}{5}$$ L of OJ

1 L mix sold. $$\frac{2}{5}$$ L is OJ
1L - $$\frac{2}{5}$$ L = $$\frac{3}{5}$$ L of water

$$\frac{Water}{OJ}=\frac{\frac{3}{5}}{\frac{2}{5}}=\frac{3}{2}=1.5$$ liters of water added per L of OJ

_________________
SC Butler has resumed! Get two SC questions to practice, whose links you can find by date, here.

Instructions for living a life. Pay attention. Be astonished. Tell about it. -- Mary Oliver
Intern
Joined: 18 Jun 2017
Posts: 11
Re: A retailer adds freely available water to an orange concentrate  [#permalink]

### Show Tags

03 Mar 2018, 00:00
First, we need to find the final concentration of orange concentrate in the drink. Which is 40% ( ($30-$c)/$c=0.5)-----> c=$20 ----> we can buy 0.4L of the concentrate with $20). The question now boils down to how much water is to be added to a 100% concentrate to make it a 40% concentrate. This is 1/(1+W) = 0.4 ----> w =1.5L. pushpitkc wrote: A retailer adds freely available water to an orange concentrate, costing$50 per liter, to prepare an orange drink. He sells the drink at \$30 per liter and earns 50% profit on his investment. How many liters of water does he add to each liter of the orange concentrate?

A. 0.5
B. 0.60
C. 0.67
D. 1
E. 1.5

Source: Experts Global
Intern
Joined: 29 Mar 2017
Posts: 16
Location: India
GMAT 1: 720 Q49 V39
Re: A retailer adds freely available water to an orange concentrate  [#permalink]

### Show Tags

03 Mar 2018, 00:54
we can use the allegation general formula here..
Quantity of cheaper/quantity of derar=(price of dearer-price mean price)/
(mean price-price of cheaper)
here mean price = 20(as sp is 30 and profit is 50%)
hence, Qty of water/qty of orange concentrate=(50-20)/(20-0)=30/20-3/2
now, since orang concentrate is 1l, qty of water = 3/2=1.5L.
Non-Human User
Joined: 09 Sep 2013
Posts: 13418
Re: A retailer adds freely available water to an orange concentrate  [#permalink]

### Show Tags

06 Jul 2019, 23:02
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: A retailer adds freely available water to an orange concentrate   [#permalink] 06 Jul 2019, 23:02
Display posts from previous: Sort by