shankar.ashwin wrote:Linda has a wheat business. She purchases wheat from a local wholesaler at a particular cost per pound. The price of the wheat at her stores is $3 per pound. Her faulty spring balance reads 0.9 pounds for a pound. Also, in the festival season, she gives a 10% discount on the wheat. She found that she made neither a profit nor a loss in the festival season. At what price did Linda purchase the wheat from the wholesaler?
A) 2.43
B) 2.5
C) 2.7
D) 3
E) 3.3
To make the math easier, let the regular selling price per pound = 300.
In registering .9 pounds for every actual pound sold, Linda's scale fails to account for 10% of every pound sold.
The result is that Linda loses 10% of what she should be earning:
300 - .1(300) = 270.
The discount causes Linda to lose another 10%:
270 - .1(270) = 243.
Thus, in order to break even, Linda must pay $243 for the wheat.
The correct answer is
A.
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