Question

The company in the example on page 301 decides to increase the capacity of its large bottles from 32 fl oz to 40 fl oz. It plans to keep the ratio of capacity to cost the same. How much should the company charge for a bottle that holds 40 fl oz

Answer 1

Cost of new bottle = 1.25a

Explanation:

Given:

Volume of old bottle = 32 fl oz

Volume of new bottle = 40 fl oz

Computation:

Assume price ratio of old bottle = a

So,

Price ratio of new bottle [Compare by capacity] = [40/32]a

Cost of new bottle = 1.25a