Problema Solution
Pauls grocery received 1000 pounds of onions at $.012 per pound. On average 5% of the onions will spoil before selling. Find the selling price per pound to obtain a markup rate of 200% based on cost
Answer provided by our tutors
The cost for 1000 pound at $0.12 per pound is:
1000*0.12 = $120
Cost = $120
Markup Percentage = 2.00 or 200%
The amount the onions that will be solved is 100 - 5 = 95% of 1000:
0.95*1000 = 950 lbs
Sales Price = Cost X Markup Percentage + Cost
Sales price = 120*2.00 + 120
Sales price = $360
The Sale price per pound should be:
360/950 = $0.38 per pound