Mr. Ice sells ice cream for $1 each. Mr. Freeze sells a different ice

Question

Mr. Ice sells ice cream for $1 each. Mr. Freeze sells a different ice cream for $3 each. On one Sunday, at the end of the day’s business, Mr Ice had sold three times as many ice creams as Mr Freeze. Interestingly, they had both also made the same amount of profit for that day.

Which of the following can be inferred from the above statements?

(A) The total cost incurred by Mr Freeze for that day was three times that incurred by Mr Ice.
(B) Mr Ice’s ice cream is more popular than Mr. Freeze’s ice cream.
(C) The total cost incurred by Mr Ice for that day was three times that incurred by Mr. Freeze.
(D) Mr Freeze’s ice cream sells in smaller numbers because of its higher selling price.
(E) Both Mr Ice and Mr Freeze incurred the same costs for that day

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gemministorm · Answer

I assumed, let Ice Qty = 300 and Freeze Qty = 100
Ice price 1$, sold for 300x1 = 300$

Freeze price 3$, sold for 100x3 = 300$

same profit for that day,
cost must have been same as profit = CP-SP
so, E

Dereno · Answer

Let the cost incurred for Mr. Ice and Mr. Freeze are x and y respectively.

The selling price of Mr. Ice and Mr. Freeze are $1 and $3 each.

The quantity of Mr. Ice and Mr. Freeze are 3b, and b respectively.

Revenue of Mr. Ice = 3b * 1 = 3b

Revenue of Mr. Freeze = b * 3 = 3b

Profit of Mr. Ice = 3b - x

Profit of Mr. Freeze = 3b - y

If the profits are equal , which means 3b - x = 3b - y

This means the Cost incurred by both should be same.

Let’s look into the options:

(A) The total cost incurred by Mr Freeze for that day was three times that incurred by Mr Ice.

If y = 3x , then the profits cannot be equal. Hence, Wrong.

(B) Mr Ice’s ice cream is more popular than Mr. Freeze’s ice cream.

This is contradictory because, being popular doesn’t mean the sales has been high, there can be reasons like low cost which should have boosted the sale. Hence, wrong.

(C) The total cost incurred by Mr Ice for that day was three times that incurred by Mr. Freeze.

If x is 3 times of y. Which is exactly reverse of the option A, hence, the profit might not be equal. Hence, wrong.

(D) Mr Freeze’s ice cream sells in smaller numbers because of its higher selling price.

This can be or cannot be true. Because, the selling price can be one of the reasons,but there is a second reason is may be people didn’t like the taste or quantity or the service offered. Hence, wrong.

(E) Both Mr Ice and Mr Freeze incurred the same costs for that day
 
Only when x = y, we can definitely say that the profit remains the same. Hence, true.

Option E

Bunuel · Answer

Official Explanation

Answer: E

The stimulus states that Mr Ice sold three times as many ice creams as did Mr Freeze. Note that the selling price of Mr Freeze’s ice cream is three time that of Mr Ice’s ice cream. So, this means that both of them made the same amount of dollar sales for that day. The stimulus also states that they made the same profits at the end of that day. Thus, if sales and profits are the same, the costs have to be the same as well.  E is the correct answer.

Mr. Ice sells ice cream for $1 each. Mr. Freeze sells a different ice

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Mr. Ice sells ice cream for $1 each. Mr. Freeze sells a different ice

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