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CALVINHOBBES
21-11-2005, 10:38 AM
If you go to McDonalds and order a medium value meal (eg., Quarter Pounder with Cheese), it is RM7-50. Then if you opt to top up to a Large Meal, you just add 75 sen. (I did it only because I get a free Sundae with it – current promotion till end of Nov)

Therefore RM7-50 + RM0-75 = RM8-25 to which you have to pay an additional 5% government tax.

Here’s the puzzle:
5% of RM8-25 is 0.4125 sen and so you should pay RM8-25 plus RM0-41 which is RM8-66. However, McDonalds charges you RM8-67 (one sen more).

For the fun of it, I asked for the receipt last Friday when I did the above. The receipt shows:

LCOKE 1 2.50 (I assume it meant Large Coke)
LVMQPC 1 5.75 (I assume it meant Large Value Meal Quarter Pounder with Cheese)

Govt tax 0.42
Total 8.67

So, why does McDonalds charge one sen more for government tax?

KH EE
21-11-2005, 01:35 PM
0.4125, per McD, may equals 0.42, to the nearest 2 decimal points... this way they'll won't lose the 0.0025 if they charge 0.41 instead of 0.42... the question is:- are they paying 0.41 or 0.42 to the govt?

CALVINHOBBES
21-11-2005, 01:54 PM
0.4125 rounded off to two decimal figures definitely gives you only 0.41 (ask any maths student).

Jaytea
21-11-2005, 02:01 PM
0.4125 rounded off to two decimal figures definitely gives you only 0.41 (ask any maths student).

not if you're doing business.
when it comes to business, the rounding is roundup, not round off, not round down.

CALVINHOBBES
21-11-2005, 02:27 PM
If indeed they were rounding off 0.4125 into 0.42 then would this false rounding off be illegal? immoral? unethical? cheating?

Ski
21-11-2005, 03:19 PM
A one cent puzzle

If i may give you another puzzle.
Why do many retailers charge their merchandise at Rm 99 or Rm89 or 99 cents are they trying to hoodwink us with this sales gimmick. I usually boycott products costing which ends up with a 9 especially Bata.

TQ

kress
21-11-2005, 03:21 PM
it's a psyhological effect.... when you look at the price you see a two digit figure as opposed to a three digit figure thus your mind concludes that two digit marr sure cheaper lar...

Unbelievable
21-11-2005, 04:47 PM
No its not immoral, cheating, bla bla bla. It's how you interpret rounding (round off, up, or down). And if McD chooses to round up, there is nothing wrong with that, unless a law states otherwise

isarahim
23-11-2005, 09:02 PM
it's a psyhological effect.... when you look at the price you see a two digit figure as opposed to a three digit figure thus your mind concludes that two digit marr sure cheaper lar...

That's correct. But it's based on a consumer behaviour thesis which was done in the 1930s.

I think I've seen more recent reports suggesting the opposite effect; people nowadays are so used to this trickery that they react in opposite manner. If one shop sells a camera for 399.99 and the next shop sells it for 400, you'll purchase from the second shop.

I think around here still react rather more positively to prices ending with 8s, or having combinations of 3s, 6s, and 8s etc. Don't we? Even I...

sly
24-11-2005, 10:27 PM
A one cent puzzle

If i may give you another puzzle.
Why do many retailers charge their merchandise at Rm 99 or Rm89 or 99 cents are they trying to hoodwink us with this sales gimmick. I usually boycott products costing which ends up with a 9 especially Bata.

TQ

funny...makes me laugh :D

tykang
25-11-2005, 12:08 AM
hi yall

well for business sake if u round down 0.4125 u get 0.41 and u round up is 0.42 thats 1 sen extra but imagine the volume of cheese burgers, cokes and macvalue meal each day McD gets!!! i dunno u do ur maths it could end up with probably 1000 - 2000 burgers being sold x 0.01 sen = RM20 extra per day x nos of chains they have say 200 chains around Msia = Rm4000 x 1 month i.e 30 days = RM120,000 practically u are able to hire 100 staffs that ears RM1200
thats abig big amount of money u are talking about

as for the 99.99 or 89.99 i think that s what we called Magic pricing in economics classes. Psychologically human being are more prone to a lesser no than the large sum 89.99 is still below 90.00 as it is still within the eighties range. Who came up with this anyway????? :rolleyes: