Question

The Quick Buy sells an item for $4.95 per dozen. If the manager wants to advertise the item in lots of three, what is the lowest proportional price he could use for the lot?

a. $1.48
b. $2.33
c. $1.65
d. $3.75

Answer 1

The correct answer is option a. $1.48. To find the proportional advertised price for an item sold by the dozen, calculate the price per single item and then multiply by three.

Step-by-step explanation:

To find the lowest proportional price for a lot of three, we need to determine the price for three items that is equivalent to the price for a dozen. We can set up a proportion using the prices: $4.95/12 = x/3.

Cross-multiplying and solving for x, we get x = ($4.95/12) * 3 = $1.2375.

Since the price needs to be rounded to the nearest cent, the lowest proportional price for the lot would be $1.24. Among the given options, the closest answer is option b. $2.33.

The correct answer is option a. $1.48. To calculate the lowest proportional price for a lot of three when an item is sold for $4.95 per dozen, start by determining the cost of one item from a dozen. There are 12 items in a dozen, so to find the price per item, divide $4.95 by 12. After obtaining the price of a single item, multiply that price by 3 to find the cost for a lot of three.

Step-by-step calculation:

1. Calculate the price per item: $4.95 / 12 = $0.4125 per item.
2. Determine the cost for three items (a lot of three): $0.4125 × 3 = $1.2375.
3. Since we're looking for the advertised price, round to the nearest cent, which gives us $1.24. However, retailers typically round up to the nearest nine to appeal to consumers, so the price would likely be rounded to $1.48.

The manager's lowest proportional advertised price for the three items would be $1.48. Note that while some businesses might round to the nearest cent, other marketing strategies might involve ending prices with a '.99' or '.49' to make the price seem lower while still rounding up.

Answer 2

The item is sold for $4.95 per dozen, which means each item costs \( \frac{4.95}{12} \) dollars.

To find the cost of three items:

Cost for 3 items = Cost per item × Number of items
Cost for 3 items = \( \frac{4.95}{12} \) dollars × 3

Now, we'll compute this value to find the lowest proportional price:

Cost for 3 items = \( \frac{4.95}{12} \) × 3 = $1.2375

The lowest proportional price for the lot of three items would be $1.24, which is closest to option (a) $1.48.