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.
- Cost of Soda: Each bottle is priced at $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.