Q. Abir has a wheat business . he purchases wheat from a local wholesaler at a particular cost per pound . The price of wheat at his store $ 3 per pound. His faulty spring balance reads .9 pounds for a pound. Also in the festival season, he gives a 10% discount on the wheat .He found that he made neither a profit or loss in the festive season . At what price the wheat from wholesaler ?
A.2.43;
B.2.5;
C.2.7;
D.3;
E.3.3
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Profit-loss problem
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DavidG@VeritasPrep
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If the wheat is typically $3/pound, a 10% discount would mean that the wheat sold for $.30 less than $3, or 2.70/pound. And if the scale incorrectly shows that 1 pound is .9 pounds, then the store will receive .9 * 2.70 = 2.43/pound. If Abir broke even, then he must have paid the same price. The answer is AJoy Shaha wrote:Q. Abir has a wheat business . he purchases wheat from a local wholesaler at a particular cost per pound . The price of wheat at his store $ 3 per pound. His faulty spring balance reads .9 pounds for a pound. Also in the festival season, he gives a 10% discount on the wheat .He found that he made neither a profit or loss in the festive season . At what price the wheat from wholesaler ?
A.2.43;
B.2.5;
C.2.7;
D.3;
E.3.3
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Matt@VeritasPrep
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The prompt is unclear in many ways, but one crucial assumption that it forces us to make to solve the problem is that Abir sold all the wheat that he bought. (If he didn't, we could get many solutions.)
Making that assumption, though, we can say
Cost per pound = Revenue per pound
Let's say cost = c. We're told revenue = $3 * .9 * .9, so we've got
c = 3 * .9 * .9
c = 2.43
and we're done! (... and after decoding the prompt, I feel competent to run a wheat business
)
Making that assumption, though, we can say
Cost per pound = Revenue per pound
Let's say cost = c. We're told revenue = $3 * .9 * .9, so we've got
c = 3 * .9 * .9
c = 2.43
and we're done! (... and after decoding the prompt, I feel competent to run a wheat business
)GMAT/MBA Expert
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Jay@ManhattanReview
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While I doubt that the source of the question is genuine, I could get what the prompt wants to say.Joy Shaha wrote:Q. Abir has a wheat business . he purchases wheat from a local wholesaler at a particular cost per pound . The price of wheat at his store $ 3 per pound. His faulty spring balance reads .9 pounds for a pound. Also in the festival season, he gives a 10% discount on the wheat .He found that he made neither a profit or loss in the festive season . At what price the wheat from wholesaler ?
A.2.43;
B.2.5;
C.2.7;
D.3;
E.3.3
Marked price of wheat per lbs = $3, so selling price = 3 - 10% of 3 = $2.70 per lbs
By way of faulty spring balance, Abir earns 10% on selling price (the balance weighs 0.90 lbs for 1 lbs).
Since he earns no profit and no loss, wholesale price = Selling price - 10% of Selling price = 2.70 - 10% of 2.70 = 2.70 - 0.27 = $2.43.
Answer: A
Hope this helps!
-Jay
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