Problema Solution
A markup of 33% based on cost is desired for a load of 800 bushels of peanuts. They were purchased at $5.85 per bushel. What should the selling price per bushel be after adjusting for an anticipated 21% spoilage rate?
Answer provided by our tutors
Let 'x' represent the selling price per bushel.
Selling price = Cost + Markup
x*800*(1 - 0.33) = 5.86*800 + 5.86*800*0.33
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click here to see the equation solved for x
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x = $11.63 per bushel
The selling price per bushel should be $11.63 per bushel.