Problema Solution
The produce manager of a supermarket pays $26.60 for a 100-pound box of bananas. The manager estimates that 10% of the bananas will spoil before they are sold. At what price per pound should the bananas be sold to give the supermarket an average markup rate on cost of 30%? (Round your answer to the nearest cent.)
Answer provided by our tutors
actual cost per pound: $26.60/100 = 0.266 dollars per pound
desired revenue (30% above actual cost): 26.60 + 26.6*0.30 = 34.58
spoilage: 0.1 * 100 = 10 pounds
effective cost per pound: $26.60/90 = 0.296 dollars per pound
so the price per pound needs to be based on selling 90 pounds of bananas at a price that is effectively 0.296 dollars per pound
the price per pound the 90 pounds of good bananas should be sold at:
(34.58)/90 = 0.384
the bananas should be sold for 0.384 dollars per pound, or 38.4 cents per pound