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A soft drink company currently sells its most popular product in onel
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07 Mar 2017, 02:05
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A soft drink company currently sells its most popular product in oneliter containers for $3, yielding a 20% profit margin on the cost. If cost is proportional to volume, by what percent should the company reduce the volume of the container to yield a 50% profit margin on the cost, assuming the selling price remains the same? A. 10% B. 20% C. 25% D. 33% E. 50%
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Re: A soft drink company currently sells its most popular product in onel
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07 Mar 2017, 05:00
since the profit % is 20, the cost price is 2.5$. cost of 1 litre is 2.5$.
since selling price remains same,, inorder to get 50% margin the cost price should be 2$.
hence reduce the volume by 20%
ans B



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Re: A soft drink company currently sells its most popular product in onel
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07 Mar 2017, 13:09
Let the cost of oneliter container = $100x After 20% profit the Selling Price of the oneliter container = $120x Given Selling Price of the oneliter container = $3
Finding value of X => 120x= 3 => x=1/40 therefore cost of oneliter container = $100x = 100 * 1/40 = $2.5
Now to get 50% profit, the selling price would be $150x, if the initial cost is 100x Given: Selling Price remains the same, therefore, 150x=3 => x=1/50 Cost Price = $100x = 100* 1/50 = $2
therefore the reduction in volume = (2.5  2) *100 /2.5 = 20%
Answer is B. 20%



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Re: A soft drink company currently sells its most popular product in onel
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07 Mar 2017, 14:58
(3C)/C=0,2 C=2,5 (3C)/C=0,5 C=2 (2,52)/2,5=0,2
Answer by 20% (B)



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Re: A soft drink company currently sells its most popular product in onel
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07 Mar 2017, 15:02
Bunuel wrote: A soft drink company currently sells its most popular product in oneliter containers for $3, yielding a 20% profit margin on the cost. If cost is proportional to volume, by what percent should the company reduce the volume of the container to yield a 50% profit margin on the cost, assuming the selling price remains the same?
A. 10% B. 20% C. 25% D. 33% E. 50% A little confusing because a profit margin is never calculated as a percent of cost rather than percent of revenue... Old Revenue 3 Expense 2.5 80.00% Gross Profit 0.5 20.00% New Revenue 3 Expense 2 50.00% Gross Profit 1 50.00% 0.5/2.5 = 20%



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A soft drink company currently sells its most popular product in onel
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21 Mar 2017, 05:12
Bunuel wrote: A soft drink company currently sells its most popular product in oneliter containers for $3, yielding a 20% profit margin on the cost. If cost is proportional to volume, by what percent should the company reduce the volume of the container to yield a 50% profit margin on the cost, assuming the selling price remains the same?
A. 10% B. 20% C. 25% D. 33% E. 50% OFFICIAL SOLUTION Begin by finding the cost of the 1liter container: 1.2c = 3, and c = 2.5. Next, let’s figure out how much the product cost should be to create the 50% profit margin: 1.5x = 3, and x = 2. Since cost is proportional to volume, the percent change in cost is the same as the percent change in volume: \(\frac{(2.5  2.0)}{2.5} = \frac{0.5}{2.5}\)= 20%.
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Re: A soft drink company currently sells its most popular product in onel
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04 Apr 2017, 20:40
1L=3 Sale price = 3 Cost price = 3*(5/6) = 2.50 Cost price for profit to equal 50% of cost price = 2 2.50*0.8=2. A 20% reduction. If volume is proportional to cost then volume must also be reduced by 20%. B
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Re: A soft drink company currently sells its most popular product in onel
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16 Jun 2017, 19:18
Original CP => 30/1.2 => 2.5 New CP => 3/1.5 => 2 Percent reduction in CP => 0.5/2.5 * 100 => 20 Hence percentage reduction in SP would be 20 as well. Hence B
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A soft drink company currently sells its most popular product in onel
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08 Jul 2017, 12:22
IdiomSavant wrote: Bunuel wrote: A soft drink company currently sells its most popular product in oneliter containers for $3, yielding a 20% profit margin on the cost. If cost is proportional to volume, by what percent should the company reduce the volume of the container to yield a 50% profit margin on the cost, assuming the selling price remains the same?
A. 10% B. 20% C. 25% D. 33% E. 50% A little confusing because a profit margin is never calculated as a percent of cost rather than percent of revenue... Old Revenue 3 Expense 2.5 80.00% Gross Profit 0.5 20.00% New Revenue 3 Expense 2 50.00% Gross Profit 1 50.00% 0.5/2.5 = 20% Exactly, the wording is bad but probably intentionally so. A 20% profit margin on the cost means X * 1.2 = 3. So 3/1.2 is $2.5, which is the cost. If 2.5 is the cost what do we need to reduce it buy to get to 50%? well X *1.5 = 3 and 3/1.5 = 2. Therefore we reduced the volume from 2.5 to 2 or 0.5 /2.5 or 20%



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Re: A soft drink company currently sells its most popular product in onel
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08 Jul 2017, 19:28
SP = $3, P = 0.2, so CP = $3/1.2 = $2.5. For P to be 0.5, CP = $3/1.5 = $2. Since the volume is proportional to the cost, the volume should be reduced by (1  2/2.5) = 20%. Ans  B.
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Re: A soft drink company currently sells its most popular product in onel
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