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Updated on: 17 Oct 2023, 01:00
Originally posted by Sajjad1994 on 04 Oct 2021, 08:00.
Last edited by BottomJee on 17 Oct 2023, 01:00, edited 1 time in total.
Last edited by BottomJee on 17 Oct 2023, 01:00, edited 1 time in total.
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The ingredient that costs the least when purchased fresh has the highest percentage increase in cost per ounce when switching from purchasing wholesale to purchasing fresh.: Yes
The menu item with the lowest sales price has the highest ratio of net profit to cost of ingredients.: No
The menu item with the highest net profit has the highest markup (sales price divided by cost of ingredients).: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
66% (03:27) correct
34%
(03:33)
wrong
based on 1366
sessions
History
Date
Time
Result
Not Attempted Yet
1. Consider each of the following statements. Is the statement supported by the information provided?
| Yes | No | |
| The ingredient that costs the least when purchased fresh has the highest percentage increase in cost per ounce when switching from purchasing wholesale to purchasing fresh. | ||
| The menu item with the lowest sales price has the highest ratio of net profit to cost of ingredients. | ||
| The menu item with the highest net profit has the highest markup (sales price divided by cost of ingredients). |
ShowHide Answer
Official Answer
The ingredient that costs the least when purchased fresh has the highest percentage increase in cost per ounce when switching from purchasing wholesale to purchasing fresh.: Yes
The menu item with the lowest sales price has the highest ratio of net profit to cost of ingredients.: No
The menu item with the highest net profit has the highest markup (sales price divided by cost of ingredients).: No
1 out of 3
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
62% (02:01) correct
38%
(02:01)
wrong
based on 1297
sessions
History
Date
Time
Result
Not Attempted Yet
2. What is the probability that obtaining an ingredient fresh from a local farm will increase the cost per ounce for that ingredient by more than 75%?
| 1 out of 6 | |
| 1 out of 3 | |
| 1 out of 2 | |
| 2 out of 3 | |
| 1 out of 1 |
ShowHide Answer
Official Answer
1 out of 3
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07 Oct 2021, 05:34
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Official Explanation
1. Consider each of the following statements. Is the statement supported by the information provided?
The ingredient that costs the least when purchased fresh has the highest percentage increase in cost per ounce when switching from purchasing wholesale to purchasing fresh.
Find the ingredient with the lowest Cost (Fresh): Oregano.
Next, use the data in Tab #1 to calculate the cost per ounce for each item. For example, for Cheese, divide the Cost (Wholesale) by the Size (ounces) to determine a cost per ounce of Cheese of 20 cents when purchased wholesale. In the same way, calculate the cost per ounce of Cheese of 30 cents when purchased fresh. Next, use the percent change formula to calculate the percentage increase in cost per ounce:
\(\frac{Difference}{Original} = \frac{30-20}{20} = 50\)%
Repeat the same calculations for each of the ingredients to find the percentage increase for Oregano (200%), Bell Pepper (25%), Lettuce (approximately 67%), Onion (100%), and Celery (10%).
Therefore, Oregano has the highest percentage increase in cost per ounce of all the ingredients, and the statement is supported.
The answer is Yes.
The menu item with the lowest sales price has the highest ratio of net profit to cost of ingredients.
Use the table in Tab #2 to find the menu item with the lowest Sales Price, which is the Taco.
Next, calculate the ratio of Net Profit to Cost of Ingredients for the Taco, which is 3 to 1. Then, calculate the same amount for the other Menu Items, looking for one that is greater. When you reach Pasta, the result is 3.66 to 1, which is higher than 3 to 1, and so this statement is not supported.
The answer is No.
The menu item with the highest net profit has the highest markup (sales price divided by cost of ingredients).
Use the table in Tab #2 to find the menu item with the highest Net Profit, which is Pizza. Calculate the markup on Pizza by dividing the Sales Price of $10.00 by the Cost of Ingredients of $2.75, for a markup of about 3.63 times the cost.
Next, calculate the markup for the other items, looking for one with a higher markup than Pizza. When you reach Pasta, the markup is 4.66 times the Cost of Ingredients, which is greater than 3.63, and so this statement is not supported.
The answer is No.
2. What is the probability that obtaining an ingredient fresh from a local farm will increase the cost per ounce for that ingredient by more than 75%?
The question asks for the probability that obtaining an ingredient fresh from a local farm will increase the cost per ounce for that ingredient by more than 75%. In order to determine the answer, you need to calculate the percentage increase in cost per ounce for each of the ingredients.
First, you must use the data in Tab #1 to find the cost per ounce for each item. For example, for Cheese, divide the Cost (Wholesale) by the Size (ounces) to determine a cost per ounce of Cheese of 20 cents when purchased wholesale. In the same way, calculate the cost per ounce of Cheese of 30 cents when purchased fresh. Next, use the percent change formula to calculate the percentage increase in cost per ounce:
\(\frac{Difference}{Original} = \frac{30-20}{20} = 50\)%
Repeat the same calculations for each of the ingredients to find the percentage increase for Oregano (200%), Bell Pepper (25%), Lettuce (approximately 67%), Onion (100%), and Celery (10%).
Once you have those amounts, calculate the probability that the ingredient has a percentage increase over 75%: 2 ingredients (Oregano and Onion) do, out of 6 total ingredients, which simplifies to 1 out of 3.
Answer: B
1. Consider each of the following statements. Is the statement supported by the information provided?
The ingredient that costs the least when purchased fresh has the highest percentage increase in cost per ounce when switching from purchasing wholesale to purchasing fresh.
Find the ingredient with the lowest Cost (Fresh): Oregano.
Next, use the data in Tab #1 to calculate the cost per ounce for each item. For example, for Cheese, divide the Cost (Wholesale) by the Size (ounces) to determine a cost per ounce of Cheese of 20 cents when purchased wholesale. In the same way, calculate the cost per ounce of Cheese of 30 cents when purchased fresh. Next, use the percent change formula to calculate the percentage increase in cost per ounce:
\(\frac{Difference}{Original} = \frac{30-20}{20} = 50\)%
Repeat the same calculations for each of the ingredients to find the percentage increase for Oregano (200%), Bell Pepper (25%), Lettuce (approximately 67%), Onion (100%), and Celery (10%).
Therefore, Oregano has the highest percentage increase in cost per ounce of all the ingredients, and the statement is supported.
The answer is Yes.
The menu item with the lowest sales price has the highest ratio of net profit to cost of ingredients.
Use the table in Tab #2 to find the menu item with the lowest Sales Price, which is the Taco.
Next, calculate the ratio of Net Profit to Cost of Ingredients for the Taco, which is 3 to 1. Then, calculate the same amount for the other Menu Items, looking for one that is greater. When you reach Pasta, the result is 3.66 to 1, which is higher than 3 to 1, and so this statement is not supported.
The answer is No.
The menu item with the highest net profit has the highest markup (sales price divided by cost of ingredients).
Use the table in Tab #2 to find the menu item with the highest Net Profit, which is Pizza. Calculate the markup on Pizza by dividing the Sales Price of $10.00 by the Cost of Ingredients of $2.75, for a markup of about 3.63 times the cost.
Next, calculate the markup for the other items, looking for one with a higher markup than Pizza. When you reach Pasta, the markup is 4.66 times the Cost of Ingredients, which is greater than 3.63, and so this statement is not supported.
The answer is No.
2. What is the probability that obtaining an ingredient fresh from a local farm will increase the cost per ounce for that ingredient by more than 75%?
The question asks for the probability that obtaining an ingredient fresh from a local farm will increase the cost per ounce for that ingredient by more than 75%. In order to determine the answer, you need to calculate the percentage increase in cost per ounce for each of the ingredients.
First, you must use the data in Tab #1 to find the cost per ounce for each item. For example, for Cheese, divide the Cost (Wholesale) by the Size (ounces) to determine a cost per ounce of Cheese of 20 cents when purchased wholesale. In the same way, calculate the cost per ounce of Cheese of 30 cents when purchased fresh. Next, use the percent change formula to calculate the percentage increase in cost per ounce:
\(\frac{Difference}{Original} = \frac{30-20}{20} = 50\)%
Repeat the same calculations for each of the ingredients to find the percentage increase for Oregano (200%), Bell Pepper (25%), Lettuce (approximately 67%), Onion (100%), and Celery (10%).
Once you have those amounts, calculate the probability that the ingredient has a percentage increase over 75%: 2 ingredients (Oregano and Onion) do, out of 6 total ingredients, which simplifies to 1 out of 3.
Answer: B
General Discussion
rvgmat12
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04 Oct 2021, 08:49
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1.
Yes - Oregano goes from 0.4 to 1.2 (200% increase)
No - It is Pasta (5.5/1.5 = 3.67 approx) which has the highest ratio
No - It is Pasta (7/1.5 = 4.67 approx) which has the highest ratio
2. B
For Oregano and Onion, the increase in cost is more than 75%
2/6 = 1/3
Yes - Oregano goes from 0.4 to 1.2 (200% increase)
No - It is Pasta (5.5/1.5 = 3.67 approx) which has the highest ratio
No - It is Pasta (7/1.5 = 4.67 approx) which has the highest ratio
2. B
For Oregano and Onion, the increase in cost is more than 75%
2/6 = 1/3
