Consider the advertisement offering a promotion of "Buy two bottles of soda and get one free." If each bottle of soda is priced at $2.00 and a customer purchases 4 bottles of soda, how much money in sales is the company forfeiting due to this transaction?(2 points) Responses They would give away one free bottle loosing the retail sale amount of 1 x $2.00 = $2.00. They would give away one free bottle loosing the retail sale amount of 1 x $2.00 = $2.00.

3 answers

The company is offering a promotion where customers can buy two bottles of soda and get one free. If a customer purchases 4 bottles, they pay for 4 bottles but receive an additional bottle for free, according to the promotion.

Here's the breakdown:

  1. The customer purchases 4 bottles.
  2. Since they can take advantage of the "Buy two, get one free" offer, they pay for 4 bottles but only receive 3 as part of the deal (they receive one free with the purchase of 4).
  3. Therefore, out of the 4 bottles purchased, only 3 are charged under the promotion, resulting in 1 bottle being given away for free.

Given that each bottle costs $2.00, the company loses the retail value of the free bottle:

1 free bottle at $2.00 = $2.00 loss in sales.

Thus, the company is forfeiting $2.00 in sales due to this transaction.

that is not a answer

I apologize for the confusion in my previous response. Let's clarify the situation:

  1. The promotion is "Buy two bottles of soda and get one free."
  2. If a customer purchases 4 bottles, they will pay for 4 bottles but will effectively receive 6 bottles due to the promotion (since for every 2 purchased, they get 1 free).
  3. The customer pays $2.00 for each of the 4 bottles, totaling $8.00.
  4. Under the rules of the promotion, the customer would receive 2 free bottles, bringing the total to 6 bottles received.

However, if we only focus on the original question about how much the company is forfeiting in sales based on the promotion:

  • They would give away 1 free bottle (the 3rd one) since customers pay for 4 bottles and receive 5 total bottles due to the promotion.

Thus, the loss in sales pertains only to the one free bottle given away:

Cost of 1 free bottle = $2.00.

So the company is forfeiting $2.00 in sales due to the promotion with the transaction of purchasing 4 bottles.