Question

1.) if john bought 52lbs of bananas at .25 cent per pound expecting 10% to spoil how should he price his bananas to achieve a 59% markup on selling price?

2.) A bakery makes fat free cookies for $1.50 each. Arleyn expects 15% of the cookies to be discarded. Arley wants a 45% markup on cost and produces 200 cookies. what should arley price each cookie?

Answer 1

Answer to Question 1:

Units purchased = 52 lbs
Cost per Unit = $0.25
Spoilage Rate = 10%
Net Cost per Unit after Spoilage = $0.25 /(1 – 0.10)
Net Cost per Unit after Spoilage = $0.27778

Let the Selling Price be “$x”
Mark-up = 59% on Selling Price
Mark-up = $x * 59% = $0.59x

Selling Price = Cost + Mark-up
$x = $0.27778 + $0.59x
$0.41x = $0.27778
$x = $0.6776

Therefore, John should sold Bananas at $0.68 per lbs to achieve a mark-up of 59% on Selling price.