Question

Question

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 sale amount of 1 x $2.00 = $2.00.
They would give away one free bottle loosing the sale amount of 1 x $2.00 = $2.00.

They would give away two free bottles loosing the sale amount of 2 x $2.00 = $4.00.
They would give away two free bottles loosing the sale amount of 2 x $2.00 = $4.00.

They would give away three free bottles loosing the sale amount of 3 x $2.00 = $6.00.
They would give away three free bottles loosing the sale amount of 3 x $2.00 = $6.00.

They would give away four free bottles loosing the sale amount of 4 x $2.00 = $8.00.

Answer 1

To determine how much money the company is forfeiting due to the promotion "Buy two bottles of soda and get one free," we need to analyze the purchase of 4 bottles of soda under this promotion.

1. The customer buys 4 bottles of soda:

   • Under the promotion, for every 2 bottles purchased, the customer gets 1 additional bottle free.
   • If the customer buys 4 bottles, they will get 2 free bottles (one for every 2 purchased).

2. Calculation of the sales forfeited:

   • The customer ends up with 4 purchased bottles and 2 free bottles, totaling 6 bottles.
   • However, they only paid for 4 bottles, and they received 2 bottles for free.

3. Value of the free bottles:

   • The company is giving away 2 free bottles, and each bottle is priced at $2.00.
   • Therefore, the total loss in sales for the company due to the free bottles is:
     • 2 x $2.00 = $4.00.

Thus, the correct response is: They would give away two free bottles losing the sale amount of 2 x $2.00 = $4.00.