500 pounds of apples were purchased at $0.35 per pound. The desired markup is 30% based on selling price, but 18% spoilage is expected. What should the selling price per pound be? (Round your answer to the nearest cent)

Question

Quizplus · Accepted Answer

First, calculate the cost of the apples: 500 pounds * $0.35/pound = $175. Considering 18% spoilage, 82% of apples are sellable, so the sellable weight is 500 pounds * 82% = 410 pounds. To achieve a 30% markup based on selling price, let x be the selling price per pound. Thus, the total revenue needed is $175 / (1 - 0.30) = $250. Therefore, the selling price per pound is $250 / 410 pounds = $0.6097, rounded to $0.61.

500 Pounds of Apples Were Purchased at $0