The spoilage rate on a shipment of 100 pounds of bananas is expected to be 10%.
They were purchased at a cost of $0.25 per pound. What should the selling price
per pound be to achieve a markup of 16% based on selling price?
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Sale Price = Cost / (100% -% Markup)
As total cost = 100 x 0.25 = $25
SP = 25 / (100 - 16) = $0.3 approx
As anticipated spoilage = total quantity x spoilage rate
= 100 x 10% =100(0.1) = 10
Anticipated spoilage = 10 pounds
Selling price of periciables = 0.3 / (100-10) = 0.00333 per pounds
sorry a little mistake. wait I am correcting
SP = 25 / (100 - 16) = $30 approx
Selling price of periciables = 30 / 90 = $0.33 per pound
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