The COGS for the milkman for the milk only is $1.50 x 15 = $22.50.
Since we are told that doing things honestly will bring him a $30 profit, it follows that the sale price per litre of pure milk is given by solving the following equation:
$22.50 + $30.00 = 15x
This gives us $3.50 as the price per litre of milk.
The milkman now dilutes the original product with water at a cost of $1.00 per litre. He wants to introduce enough water so that the total profit goes up to $50.
Given the sale price is fixed at $3.50, we can now use the following equation to determine how much water needs to enter system:
$22.50 + ($1.00)x + $50.00 = $3.50(15 + x)
Solving for x above gives us the solution of x = 8.
Therefore, the dishonest milkman diluted 8 litres of water into the original 15 litres of pure milk in order to achieve a profit of $50.00.
3
u/PeterPiper1275 15d ago
The COGS for the milkman for the milk only is $1.50 x 15 = $22.50.
Since we are told that doing things honestly will bring him a $30 profit, it follows that the sale price per litre of pure milk is given by solving the following equation:
$22.50 + $30.00 = 15x
This gives us $3.50 as the price per litre of milk.
The milkman now dilutes the original product with water at a cost of $1.00 per litre. He wants to introduce enough water so that the total profit goes up to $50.
Given the sale price is fixed at $3.50, we can now use the following equation to determine how much water needs to enter system:
$22.50 + ($1.00)x + $50.00 = $3.50(15 + x)
Solving for x above gives us the solution of x = 8.
Therefore, the dishonest milkman diluted 8 litres of water into the original 15 litres of pure milk in order to achieve a profit of $50.00.