The spoilage rate on a shipment of 100 pounds of bananas is expected to be 10%

Mathematics
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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?

Jun 6th, 2015

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Jun 6th, 2015


Sale Price = Cost / (100% -% Markup) 

As total cost = 100 x 0.25 = $25

Now ;

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

Jun 6th, 2015

sorry a little mistake. wait I am correcting

Jun 6th, 2015

Sale Price = Cost / (100% -% Markup) 

As total cost = 100 x 0.25 = $25

Now ;

SP = 25 / (100 - 16) = $30 approx

As anticipated spoilage = total quantity x spoilage rate

= 100 x 10% =100(0.1) = 10

Anticipated spoilage = 10 pounds

Selling price of periciables = 30 / 90 = $0.33 per pound

Jun 6th, 2015

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