Welcome to the family! We pride ourselves on an elite customer experie

Question

Welcome to the family! We pride ourselves on an elite customer experience, a trusted brand, and a business model that can make you profitable within your first year in business. In the following documents, you will learn about our product offerings and profit margins so that you can run your own in-store promotions to attract the kinds of business that will drive the types of business that works best in your community. You will also learn about the promotions that we run on a corporate level so that you can determine which to emphasize with signage in your store and with your local advertising budget. Remember this: while conventional wisdom says that you only make money in fast food through beverages, our research shows otherwise. Sell premium food and you can make premium profits! You will see in the enclosed documents what we mean. Again, welcome to the family. We look forward to working with you to achieving your financial freedom through fast food.https://gmatclub.com/forum/download/file.php?mode=view&id=68501https://gmatclub.com/forum/download/file.php?mode=view&id=68502 Veritas Prep 1.jpg 2.jpg

Lukaliving · Answer

Hi, I have a question. Why for question 3 the answer is C- Large Salad? doesnt Large soda have the highest profit of 1.29 per unit?

Rishitha0311 · Answer

Hi  Sajjad1994

Can you please share the solution for the 1st and 3rd questions?

chetan2u · Answer

The first question has four options 
Mini, cheeseburger, Double cheeseburger mini and Double cheeseburger mega

The first three have same two items SF and SD, and only third item is different and the difference in profit is only due to this item. 
Let us concentrate on that
Mini(1.99$): Hamburger worth 0.40, Cheeseburger(2.19$): Cheeseburger worth 0.45, Double Cheeseburger mini(2.49$): Double cheeseburger worth 0.55
Clearly, Double cheeseburger mini has an extra cost of 0.15 and 0.10 over mini and cheeseburger but the profit increases by 0.50 and 0.30$ respectively. So Double cheeseburger mini is more profitable. 
Let us compare it with the remaining mega meal. 
Double cheeseburger mini = 1*0.55 + 1*0.35 +1*0.09 = .99; profit = 2.49-0.99 = 1.50$
Double cheeseburger mega = 2*0.55 + 2*0.45 +1*0.10 = 2.10; profit = 3.99-2.10 = 1.89$
So, the answer is Double cheeseburger Maha meal.

Q3. Here large soda has more profit and should be the answer. 
Editing it accordingly

Ipsita! · Answer

In q3, doesn't mini meal has most profit?

chetan2u · Answer

Mini meal profit is 1.99 - (0.40+0.35+0.09) = 1.99 - 0.84 = 1.15

Large soda profit is 1.29 > 1.15

pratiksha1998 · Answer

For the 4th Questions, are not the profits for both the options same?

SatvikVedala · Answer

Hi  pratiksha1998

I too did the same mistake

but the values provided in Tab2 are non-sale values

So Profit is calculated as

1)  One Double Cheese Mega Meal plus a large drink (3.99+x) - (2*0.55+2*0.45+2*0.10)
2) Two Double Cheese Please Meals (2*2.79) - ( 2*0.55+2*0.45+2*0.10)

since x can be at most 1.29$ (3.99+1.29 = 5.28$)
but, 2*2.79 becomes 5.58$

Hence the profit will be higher on Two Double Cheese Please Meals

-it's Satvik-
I was here, I was solving & I was learning

reyrest · Answer

Any easy way to approach such calculation heavy msr?  KarishmaB  please help with the same

KarishmaB · Answer

Often, the reason some test prep questions are calculation intensive is that they want to give you practice of solving trickier calculations by staying focussed. Some calculations are certainly involved here.

Check out Chetan's solution for question 1 above. He points out an important time saver in that - First 3 meals have same 2 products. Only one is different. So compare only the pricing of that product and not overall pricing.

Also, with questions involving calculations, I like to make a clean note of what I calculate in 1 part. It could be useful in other parts too. For example, here we know that after question 1, question 2 requires 0 calculations. We already know the answer. We know that there is more profit on cheeseburger meal. Calculation intensive questions do do this often. It balances out your overall time spent.

Bunuel · Answer

This question is not good. Archiving it.

	Mini Meal
	Cheeseburger Meal
	Double Cheese Mini Meal
	Double Cheese Mega Meal

Welcome to the family! We pride ourselves on an elite customer experie

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	One Double Cheese Mega Meal plus a large drink
	Two Double Cheese Please Meals