Financial/Math Questions

[DV8]

Who wants to help ol' DV8 out today?? Lol . . . I need somebody to answer this problem, and please explain to me briefly how you arrived at the conclusion:

Category "A" yields a margin of 5.7%, Category "B" yields a margin of 7.2%, and Category "C" yields a margin of 8.0%. Assume that the categories must be split into a ratio of 30:30:40. What is the maximum margin that you can make when the three categories are combined?

A.) 6.85%
B.) 6.97%
C.) 7.07%
D.) 7.21%

The winning answer might even get a special prize!!

 

[KALEL114]

The answer is C.) 7.07.

The maximum margin is the weighted average of the three categories. You have the margins and the weights are ratio in which the categories are to be split.
5.7X30%+7.2X30%+8.0X40%=7.07%

 

[DV8]

how did you get that answer, if you don't mind my asking? I'm good enough at math, but not knowledgable of yields, margins, ratios . . . I tried to add the margins together, and determine what 60% of the total was . . .

anyway, if you can explain that would be great; I'm taking an assessment for a new job and if I get it, I will send you $20 for helping!! no BS!

 

[KALEL114]

The formula is there in my edit. No need for money, I just Googled it.t:

http://www.justanswer.com/questions/1ta6-practice-102-16

 

[DV8]

The answer is C.) 7.07.

The maximum margin is the weighted average of the three categories. You have the margins and the weights are ratio in which the categories are to be split.
5.7X30%+7.2X30%+8.0X40%=7.07%

ooooooooh!!! WOW! Thanks! I really appreciate it . . . and no joking, if I get the job, I'm comin back for your address so I can send you some cash! :up

LMAO . . . I just looked at your other reply . . . I seriously still appreciate it though

 

[KALEL114]

No problem my friend.