Question

A markup of 33% based on cost is desired for a load of 800 bushels of peanuts. They were purchased at $5.85 per bushel. What should the selling price per bushel be after adjusting for an anticipated 21% spoilage rate? (Round answer to the nearest cent) a. $10.56 b. $7.78 c. $9.85 d. $3.91

Answer 1

Answer: Option 'c' is correct.

Explanation:

Since we have given that

Number of bushels of peanuts = 800

Price of each bushels of peanuts = $5.85

And there is mark up rate = 33%

So, Total price would be

`1.33* 800* 5.85\\\\=\$6224.4`

If there is spoilage rate = 21%

So, the remaining rate would be 1-0.21=0.79

so, Number of remaining bushels of peanuts would be

`0.79* 800\\\\=632`

So, Selling price per bushel would be

`(622.4)/(632)\\\\=\$9.85`

Hence, Option 'c' is correct.