Solve Supermarket Special Offer: $0.30 Reduction Price • icystrike In summary, The supermarket is offering 3 boxes of cereal for 2 boxes of cereal, resulting in a cost-price margin of 40%. icystrike Homework Statement A supermarket always makes 40% gross margin on its cereals. So if it sells a box for$1, it has paid the supplier 60 c. When items are sold at a special offer price, the suppliers are expected to reduce their prices so that the supermarket still makes the same percentage gross margin.

A particular cereal normally sells for $1.50 a box. This week there is a special offer which gives the customer 3 boxes for the price of 2. By how much has the supplier of this cereal had to reduce the price of each special offer box? Answer is$0.30

2. Homework Equations

The Attempt at a Solution

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Before the offer: $1.5 x 6/10 =$0.90
After the offer: $2/3 x 6/10 =$0.40
Reduction in price = $0.90 -$0.40= $0.50 icystrike said: Homework Statement A supermarket always makes 40% gross margin on its cereals. So if it sells a box for$1, it has paid the supplier 60 c. When items are sold at a special offer price, the suppliers are expected to reduce their prices so that the supermarket still makes the same percentage gross margin.

A particular cereal normally sells for $1.50 a box. This week there is a special offer which gives the customer 3 boxes for the price of 2. By how much has the supplier of this cereal had to reduce the price of each special offer box? Answer is$0.30

2. Homework Equations

The Attempt at a Solution

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Before the offer: $1.5 x 6/10 =$0.90
After the offer: $2/3 x 6/10 =$0.40
Reduction in price = $0.90 -$0.40= $0.50 You say "...if it sells a box for$1, it has paid 60 c..." That is incorrect: paying 60 c and selling for $1 is a markup of 66.67%, not the 40% you claim. Ray Vickson said: You say "...if it sells a box for$1, it has paid 60 c..." That is incorrect: paying 60 c and selling for $1 is a markup of 66.67%, not the 40% you claim. But cost margin ≠ % markup If p = selling price and mc = marginal cost, then price-cost margin is figured on the basis of the selling price, not the marginal cost. ∴ margin = (p - mc) / p In this case: p =$1.00
mc = $0.60 margin = (1.00 - 0.60) / 1.00 = 0.40 = 40% http://www.amosweb.com/cgi-bin/awb_nav.pl?s=gls&c=dsp&k=price-cost+margin icystrike said: Homework Statement A supermarket always makes 40% gross margin on its cereals. So if it sells a box for$1, it has paid the supplier 60 c. When items are sold at a special offer price, the suppliers are expected to reduce their prices so that the supermarket still makes the same percentage gross margin.

A particular cereal normally sells for $1.50 a box. This week there is a special offer which gives the customer 3 boxes for the price of 2. By how much has the supplier of this cereal had to reduce the price of each special offer box? Answer is$0.30

2. Homework Equations

The Attempt at a Solution

[/B]
Before the offer: $1.5 x 6/10 =$0.90
After the offer: $2/3 x 6/10 =$0.40

The special offer at the supermarket is a $0.30 reduction in price. How much money will I save with this special offer? You will save$0.30 with this special offer.

No, this special offer may only apply to select products at the supermarket.

How long will this special offer last?

The duration of this special offer may vary, but it is usually for a limited time only. It is best to check with the supermarket for the exact dates.

Can I combine this special offer with other discounts or promotions?

It depends on the specific terms and conditions of the special offer. It is best to check with the supermarket for any restrictions or limitations.