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 and a customer purchases four bottles of soda how much money in sales is the company forfeiting due to this transaction a they would give away one free bottle losing the sell amount of one times two dollars equals $2 they would give away two free bottles losing the sell amount of 2x2 equals $4 C they would give away three free bottles losing the sell amount of three times two dollars equals six or D they would give away for free bottles losing the sell amount of $4 * 2 = 8

1 answer

To determine how much money the company is forfeiting due to the promotion of "buy two bottles of soda and get one free," we first need to analyze the transaction involving a customer purchasing four bottles.

  1. Cost of Soda: Each bottle is priced at $2.
  2. Promotion: For every two bottles purchased, the customer gets one bottle free.

Now, let’s break down the customer’s purchase of four bottles of soda:

  • The customer purchases 4 bottles.
  • According to the promotion, if they buy 2 bottles, they get 1 free. Therefore, when they buy 4 bottles, they’ll receive 2 free bottles total.

Calculation of Sales

  • Bottles purchased: 4
  • Bottles received for free: 2
  • Total bottles (purchased + free): 4 (purchased) + 2 (free) = 6 bottles in total

Cost of Purchased Bottles

The customer pays for 4 bottles:

  • 4 bottles × $2 per bottle = $8 paid

Value of Free Bottles

The company is giving away 2 free bottles:

  • 2 free bottles × $2 per bottle = $4 in lost sales

Conclusion

The company is forfeiting $4 in sales for giving away 2 free bottles when 4 bottles are purchased.

So the correct answer is: B) They would give away two free bottles losing the sell amount of 2 x 2 equals $4.