Question

A grocer brought 300 pounds of bananas at 0.32 per pound. Experience indicates that, as a result of aging, 25% of the bananas are sold at 75% of cost and another 15% are discarded. Find the original marked price that will produce a 25% markup on cost.

Answer 1

To find the original marked price for a 25% markup on cost, calculate the total cost of bananas, account for the loss from discounted and discarded bananas, and apply the markup only to the remaining bananas that are sold at full price.

Step-by-step explanation:

First, we need to calculate the total cost of the bananas. The grocer bought 300 pounds of bananas at $0.32 per pound.

Total Cost = 300 pounds × $0.32/pound

Next, we determine the losses. 25% of bananas are sold at 75% of cost, and 15% are discarded.

Sold Bananas (loss) = 300 pounds × 25% × (1 - 75%)
Discarded Bananas = 300 pounds × 15%

Calculating the remaining amount sold at full price:

Full Price Bananas = 300 pounds - Sold Bananas (loss) - Discarded Bananas

To achieve a 25% markup on cost, the selling price per pound must be:

Selling Price = Total Cost × (1 + 25%) ÷ Full Price Bananas

Finally, we find the original marked price per pound to meet the desired markup.