Question

1-89E: A man goes to a traditional market to buy a steak for dinner. He finds a 12-oz (1 lbm 5 16 oz) for $5.50. He then goes to the adjacent international market and finds a 300-g steak of identical quality for $5.20. Which steak is the better buy?

Answer 1

Answer:

Steak in case 1 i.e 12 - oz for $5.50 is better.

Explanation:

Data provided in the question:

Case 1

Cost for 12 oz steak = $5.50

1 lbm = 16 oz

Therefore,

1 oz = $\frac{1}{16}$ lbm

Thus,

12 oz = $\frac{12}{16}$ lbm

also,

1 lbm = 0.45359 kg

Thus,

12 oz = $\frac{12}{16}\times0.45359$ lbm

or

12 oz = 0.3401925 kg

Hence,

Cost per kg = $5.50 ÷ 0.3401925

= $16.167 / kg

Case 2

Cost of 300 g steak = $5.20

or

Cost of 0.3 kg steak = $5.20

cost per kg = $5.20 ÷ 0.3

or

cost per kg = $17.33 /kg

hence,

Steak in case 1 i.e 12 - oz for $5.50 is better.