Question

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)

Answer 1

1. The problem indicates that 300 pounds of oranges were purchased at $0.24 per pound, so the cost is:

300x$0.24=$72

2. A percent of 21% spoilage is expected, which means that 89% of 300 pounds of oranges left, is:

300x0.89=267 pounds of oranges

3. We want to calculate the selling price per pound of 267 pounds of oranges, so let's call this value "x":

Markup %=(Markup/cost)x100

Markup=267x-72

4. The desired markup, based on selling price, is 50%. So, when we substitute the values, we obtain:

(267x-72/72)x100=50

5. Let's clear the "x":

(26700x-7200/72)=50
26700x-7200=50x72
26700x-7200=3600
26700x=3600+7200
x=10800/26700
x=$0.40
x=40 cents

What should the selling price per pound be?

The answer is: 40 cents or $0.40