On the GMAT, answer choice E would be an actual ratio instead of "none of these."
For the reason, I've replaced option E with an actual ratio:
vaibhav101 wrote:A dairyman pays $6.40 per litre of milk. He adds water and sells the mixture at $8 per litre, thereby making 37.5% profit. The proportion of water to milk received by he customers is
A 1:10
B 1:12
C 1:15
D 1:20
E 1:25
An alternate approach is to PLUG IN THE ANSWERS, which represent the ratio of water to milk.
When the correct answer choice is plugged in, the profit must be 37.5%.
B: 1 liter water per 12 liters milk, for a total of 13 liters
At a price of $6.40 per liter, the total cost price for 12 liters of milk = $76.80.
At a selling price of $8 per liter, the total selling price for 13 liters of mixture = 8*13 = 104.
Profit = (selling price) - (cost price) = 104 - 76.80 = $27.20.
Profit/cost = (27.20)/(76.80) = 2720/7680 = 272/768 = 136/384 = 68/192 = 34/96 = a little more than 34%.
The profit is TOO LOW.
To increase the profit, LESS MILK must be mixed with 1 liter of water.
The correct answer is
A.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at
[email protected].
Student Review #1
Student Review #2
Student Review #3
