See if you can get this Maths Question right

[MobiusPizza]

For those who are STILL not convinced the answer is $100

The neighbour is irrelavent to the lost. The $100 is cancelled out.
Hence the simplified question is:

A buyer pays for a $21 product (wholesale price $18) with a fake $100 note. The shopkeeper gave him $79 change without realising the note was fake

This question can be answered in 3 seconds
The lost of the shopkeeper is $100

Why not $97? $97 is not wrong BUT it's not optimal
Why?

Let's imagine you are the shopkeeper, I am someone from an insurance company
If I ask how much have you lost overall
You would definitely answer $21 not $18

Common sense tell you that you won't quote wholesell price at all

 

[Amused]

BTW, AnnihilatorX

WTF is with "math" pluralized in your thread title?

"MATHS?"

 

[MobiusPizza]

Well dunno
People here says Maths not Math

As do people call "Mathematics" Mathematics not "Mathematic"

 

[computeerrgghh]

$0 because he pays his $100 debt with a counterfeit $100 bill

 

[Amused]

Originally posted by: AnnihilatorX
Well dunno
People here says Maths not Math

As do people call "Mathematics" Mathematics not "Mathematic"

What about "electronical?"

 

[Amused]

Originally posted by: computeerrgghh
$0 because he pays his $100 debt with a counterfeit $100 bill

BINGO!!

He later passes off the fake 100 to someone else, recouping his losses!

GENIUS!!!

 

[MobiusPizza]

Originally posted by: Amused

Originally posted by: AnnihilatorX
Well dunno
People here says Maths not Math

As do people call "Mathematics" Mathematics not "Mathematic"

What about "electronical?"

If you meant Electronics we have an "s"
Electrical is not a noun but adjective.
Mathematical as an adjective doesn't have "s"
Mathematics is a noun and it has an "s"

 

[Amused]

Originally posted by: AnnihilatorX

Originally posted by: Amused

Originally posted by: AnnihilatorX
Well dunno
People here says Maths not Math

As do people call "Mathematics" Mathematics not "Mathematic"

What about "electronical?"

If you meant Electronics we have an "s"
Electrical is not a noun but adjective.
Mathematical as an adjective doesn't have "s"
Mathematics is a noun and it has an "s"

I was being funny.

I actually heard a flight attendant use that word TWICE during PA announcements on a flight between SC and Chicago.

 

[MobiusPizza]

lol I see Electronical you said not Electrical
My poor knowledge in English tells me that "Electronic" is already an adjective so "Electronical" is utter nonsense

 

[Amused]

Originally posted by: AnnihilatorX
lol I see Electronical you said not Electrical
My poor knowledge in English tell me that "Electronic" is already an adjective so "Electronical" is utter nonsense

You had me worried there...

 

[Cristatus]

$97 lost

 

[mchammer187]

Originally posted by: AnnihilatorX
For those who are STILL not convinced the answer is $100

The neighbour is irrelavent to the lost. The $100 is cancelled out.
Hence the simplified question is:

A buyer pays for a $21 product (wholesale price $18) with a fake $100 note. The shopkeeper gave him $79 change without realising the note was fake

This question can be answered in 3 seconds
The lost of the shopkeeper is $100

Why not $97? $97 is not wrong BUT it's not optimal
Why?

Let's imagine you are the shopkeeper, I am someone from an insurance company
If I ask how much have you lost overall
You would definitely answer $21 not $18

Common sense tell you that you won't quote wholesell price at all

it should be wholesale price

he could suddenly change the price to $5000 and say he lost that

because he dictates the retail price

just because someone is willing to pay $21 in counterfit money for an item doesnt mean it is worth that much

insurance will not pay what you think an item is worth they will pay how much it will cost to replace it this can be more or less than what it originally cost you but that is irrelevant

if it costs you $25 to get a new item they should pay you $25 if it costs if it costs $18 than it is going to be $18


the price you sell an item for has no bearing

suppose I lose 100 pentium II 200 mhz in a fire in my computer shop for that I sell for $100 each just because I have sold maybe 2 to suckers doesnt mean they are worth that much

if I asked for $10000 from the insurance company they would laugh their asses off

 

[Amused]

Originally posted by: mchammer187


it should be wholesale price

Take a business class.

Lost profits are still a loss.

 

[mchammer187]

Originally posted by: Amused

Originally posted by: mchammer187


it should be wholesale price

Take a business class.

Lost profits are still a loss.

not a loss if you could have never sold the item in the first place

 

[Amused]

Originally posted by: mchammer187

Originally posted by: Amused

Originally posted by: mchammer187


it should be wholesale price

Take a business class.

Lost profits are still a loss.

not a loss if you could have never sold the item in the first place

Most stores sell their stuff quite well.

Again, take a business class.

 

[HeroOfPellinor]

You are selling rocks you gather for free from your neighbor's backyard for $9 each. Guy buys one with a $10 and you give him $1 from your pocket and later discover the $10 is fake. You are saying that you're out $10 when the rocks cost you nothing?

 

[mchammer187]

Originally posted by: Amused

Originally posted by: mchammer187

Originally posted by: Amused

Originally posted by: mchammer187


it should be wholesale price

Take a business class.

Lost profits are still a loss.

not a loss if you could have never sold the item in the first place

Most stores sell their stuff quite well.

Again, take a business class.

doesnt mean a damn thing

this could be a $21 pack of juicy fruit and an insurance company would be retarded to pay it

 

[Amused]

Originally posted by: mchammer187

Originally posted by: Amused

Originally posted by: mchammer187

Originally posted by: Amused

Originally posted by: mchammer187


it should be wholesale price

Take a business class.

Lost profits are still a loss.

not a loss if you could have never sold the item in the first place

Most stores sell their stuff quite well.

Again, take a business class.

doesnt mean a damn thing

this could be a $21 pack of juicy fruit and an insurance company would be retarded to pay it

It's not that easy or simplistic. The INS CO would audit the business to see what the item had been selling for previously.

They aren't stupid, you know.

 

[IBuyUFO]

He lost 197 bux

 

[goog40]

Loss of 79 cash and 18 in inventory.

 

[SandGnome]

Originally posted by: dullard
Wow. This thread is funny. The answer is $97. And to ease concern of those who worry about lost profits, lets assume it is a typical business with tons of product on the shelf. The next customer comes in and buys the product on the shelf - no lost profit. Then the store owner buys the item without ever running out of stock and never any lost profit.

true. He bought the item for $18 and sold it for $21, gaining $3 markup. He lost the $100 from the counterfeit bill. The $3 profit was not really lost, as the transaction was made. $3 - $100 = -$97

 

[mchammer187]

Originally posted by: Amused

Originally posted by: mchammer187

Originally posted by: Amused

Originally posted by: mchammer187

Originally posted by: Amused

Originally posted by: mchammer187


it should be wholesale price

Take a business class.

Lost profits are still a loss.

not a loss if you could have never sold the item in the first place

Most stores sell their stuff quite well.

Again, take a business class.

doesnt mean a damn thing

this could be a $21 pack of juicy fruit and an insurance company would be retarded to pay it

It's not that easy or simplistic. The INS CO would audit the business to see what the item had been selling for previously.

They aren't stupid, you know.

which is why I said the $21 could be BS or not

he technically does not lose any profit until he runs out of stock prior to getting a replacement

if he has plenty of inventory the insurance copy is well with their rights to replace it and not pay for his lost profit if this was the case because there would be no lost profit if there was sufficient stock

take the case of something that has an extremely high markup % wise or dollarwise

you won't find an insurance company that is willing to eat that kind of difference


$97 vs $100 is no big difference but $5K to $7K for instance isn't something they are going to be coughing up so easily

 

[YayYay]

Originally posted by: HeroOfPellinor
You are selling rocks you gather for free from your neighbor's backyard for $9 each. Guy buys one with a $10 and you give him $1 from your pocket and later discover the $10 is fake. You are saying that you're out $10 when the rocks cost you nothing?

This is how I would see it personally. I would be out 10 IF

the rocks were limited and they were going to be sold for sure. This all depends if you factor in oppurtunity cost. 9 bucks I would have made and the dollar I lost. The question should have asked from what point of view and the accounting system used. My reasoning wouldn't look too good in an audit but make sense in the economic stand point.

 

[Gigantopithecus]

Mr. Anderson is out nothing, not because he's going to keep circulating the fake $100 bill, but because he's going to declare the loss on his shop's taxes, and have that deducted from his liability.

Or is it that losses are deducted from your taxable income, therefore reducing your liability by % rather than absolutely?

 

[Brian M]

Originally posted by: AnnihilatorX
How much in total had our poor Mr. Anderson lose?

The ambiguity of the question stems from the way the question is asked. First of all, how much had he lose is not even correct english. Second, the loss can be interpreted in multiple ways based upon what point in the transaction you started to count how much money Mr. Anderson lost. And if you say you started from the beginning of the transaction then this may still be interpreted multiple different ways because it's arguable about how much money Mr. Anderson has at first.

That's my 2 cents.

And I'm in agreement with $97 by the way I interpreted the question. He lost $100 by counterfeit and gained $3 by one sale, so that's $97.