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icystrike

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## 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

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