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

It is currently 18 Jan 2019, 16:18

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in January
PrevNext
SuMoTuWeThFrSa
303112345
6789101112
13141516171819
20212223242526
272829303112
Open Detailed Calendar
  • Free GMAT Strategy Webinar

     January 19, 2019

     January 19, 2019

     07:00 AM PST

     09:00 AM PST

    Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT.
  • FREE Quant Workshop by e-GMAT!

     January 20, 2019

     January 20, 2019

     07:00 AM PST

     07:00 AM PST

    Get personalized insights on how to achieve your Target Quant Score.

A retailer adds freely available water to an orange concentrate

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

 
Senior PS Moderator
User avatar
V
Joined: 26 Feb 2016
Posts: 3334
Location: India
GPA: 3.12
Premium Member CAT Tests
A retailer adds freely available water to an orange concentrate  [#permalink]

Show Tags

New post 01 Mar 2018, 11:38
3
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

56% (02:08) correct 44% (02:12) wrong based on 86 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
VP
avatar
P
Joined: 07 Dec 2014
Posts: 1152
A retailer adds freely available water to an orange concentrate  [#permalink]

Show Tags

New post 01 Mar 2018, 14:30
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
avatar
V
Joined: 22 May 2016
Posts: 2346
Re: A retailer adds freely available water to an orange concentrate  [#permalink]

Show Tags

New post 01 Mar 2018, 16:11
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

Answer E

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

Answer E
_________________

Never look down on anybody unless you're helping them up.
--Jesse Jackson

Intern
Intern
avatar
B
Joined: 18 Jun 2017
Posts: 13
Re: A retailer adds freely available water to an orange concentrate  [#permalink]

Show Tags

New post 02 Mar 2018, 23:00
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
Intern
User avatar
B
Joined: 29 Mar 2017
Posts: 19
Location: India
GMAT 1: 720 Q49 V39
GMAT ToolKit User
Re: A retailer adds freely available water to an orange concentrate  [#permalink]

Show Tags

New post 02 Mar 2018, 23:54
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.
GMAT Club Bot
Re: A retailer adds freely available water to an orange concentrate &nbs [#permalink] 02 Mar 2018, 23:54
Display posts from previous: Sort by

A retailer adds freely available water to an orange concentrate

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.