A scout troop buys candy bars at a price of five for dollars. They sell all the candy bars at the price of two for dollar. What was their profit, in dollars?
- A)
- B)
- C)
- D)
- E)
Answer
A
Key insight
Convert both prices to a per-bar rate (40 cents to buy, 50 cents to sell) so the profit is 10 cents per bar times 1000 bars.
Solution
Buying five bars for dollars means each bar costs dollar, so the whole purchase costs
Selling two bars for dollar means each bar brings in dollar, so the total revenue is
Profit is revenue minus cost: .
The answer is .
Why this works
"Five for two dollars" and "two for one dollar" are rates; converting each to a price per single bar puts them on the same footing, after which profit is a subtraction. Whenever two group prices are compared, reduce both to a unit rate (or to a common batch size) first.
Alternative approach
Use a batch of bars: it costs dollars and sells for dollars, a gain of dollar per bars. With such batches the profit is .
The trap
Reporting the revenue (500) or the cost (400) instead of their difference.
Common mistakes
- Reporting the revenue (500) or the cost (400) instead of their difference.
- Inverting a rate, e.g. treating "five for dollars" as dollars per bar.
Techniques
Set up the equation/formula and compute; no special trick needed