Question

You decide to make milk a loss leader. You drop the price from its cost of $2.59 per gallon to $1.99 per gallon. What is the percentage loss per gallon?

Answer 1

Answer: 23%

Explanation:

Answer 2

The percentage loss per gallon is 23.17%

Explanation:

Original price per gallon = $ 2.59

Discounted price per gallon = $ 1.99

Now, let's calculate the percentage loss per gallon, using the Direct Rule of Three, as follows:

Price Percentage

2.59 100

1.99 x

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2.59 * x = 1.99 * 100

2.59x = 199

x = 199/2.59

x = 76.83

Percentage loss = 100 - 76.83

Percentage loss = 23.17%