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fauji
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fauji
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HowdyPartner

Quote:
In what proportion must water be mixed with alcohol to gain \(12\frac{1}{2}\)% by selling it at the cost price?

A) 1:3
B) 3:1
C) 8:1
D) 1:8
E) 2:3
I think the question stem could have been better stated to say, water to alcohol will be in what proportion? Or something like this.

But -- anyways -- the way to think about this is 1/4 = 25% and half is 12.5% or 1/8 -- so the selling price will be 9/8 -- because selling at a 12.5% gain

so -- if 9/8x -- then we are going to have 8/9 alcohol and 1/9 water, or 8:1 alcohol to water (or 1:8 water to alcohol -- per the correct answer).
­Agree...question could have written better. I choose ans C mistakenly. However, I do believe GMAT could trick us like this as well. 
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Quantity of alchol is x and cost per liter is c
Quantity of water is y and cost per liter is 0

Quantity of mixture is x+y sold at cost per liter equal to c
Revenue=c*(x+y)
Cost per liter = c*x
Profit=c*x*1/8

revenue - cost = profit
c(x+y) - cx = 1cx/8
--> x/y=8/1

Option D­
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fauji
In what proportion must water be mixed with alcohol to gain \(12\frac{1}{2}\)% by selling it at the cost price?

A) 1:3
B) 3:1
C) 8:1
D) 1:8
E) 2:3
One can solve this question similar to the milkman's questions.
Essentially, all the profit will be provided by water disguised as alcohol, the base should just be alcohol.
i.e CP will be the price of pure alcohol and profit will be water.
So, water = 25/2 = 12.5% and alcohol will be 100%
25:200
1:8
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