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re: Help with riddle - How Much Money Did The Store Lose?

Posted on 12/12/23 at 6:36 pm to
Posted by northshorebamaman
Cochise County AZ
Member since Jul 2009
35577 posts
Posted on 12/12/23 at 6:36 pm to
quote:

That's a different item from the inventory with its own potential profit margin.

In any case, this has been a fun thought exercise
Agreed. The question is effective because it manages to bog people down with clutter that isn't useful while subtly altering the way people approach it by presenting it as theft.

Replace the word 'theft' with 'give' and I don't think as many people would have trouble with it:

"A store gives a man a gift certificate for $100 and he purchases $70 in goods and receives $30 in change. How much did it cost the store?"

In both scenarios the person is shopping with $100 of 'house money', in both scenarios the math is the same, in both scenarios there are the same profit margins and labor costs. The only difference is one of them comes with moral baggage. But morality doesn't change math.

This post was edited on 12/12/23 at 6:40 pm
Posted by Rabby
Member since Mar 2021
600 posts
Posted on 12/13/23 at 12:54 pm to
quote:

in both scenarios the math is the same

Actually, I disagree. While accountants might quibble on the cost of goods sold involved in the gift certificate scenario, that is an accounting exercise.

The discussion of the loss under the theft scenario is a legal one since that involves what was taken.

The legal loss was $100.
This post was edited on 12/13/23 at 1:00 pm
Posted by dallastigers
Member since Dec 2003
5786 posts
Posted on 12/13/23 at 1:08 pm to
quote:

Replace the word 'theft' with 'give' and I don't think as many people would have trouble with it:

"A store gives a man a gift certificate for $100 and he purchases $70 in goods and receives $30 in change. How much did it cost the store?"


What is the net loss to a store if someone uses a counterfeit $100 bill to purchase a $70 product with a cost of $50 and gets $30 in change back?
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