300 pounds of oranges were purchased at $0.24 per pound. The desired markup is 50% based on selling price, but 21% 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 total cost: 300 pounds * $0.24/pound = $72. Then, account for spoilage: 79% of 300 pounds = 237 pounds are sellable. To achieve a 50% markup based on selling price, the total selling price must be $72 / (1 - 0.5) = $144. Therefore, the selling price per pound is $144 / 237 pounds = $0.6076, rounded to $0.61.

300 Pounds of Oranges Were Purchased at $0