The produce manager of a supermarket pays box of bananas. The manager estimate the bananas will spoil before they are solD

Question

The produce manager of a supermarket pays $19.38 for a 100-pound box of bananas. The manager estimates that 10% of the bananas will spoil before they are sold. At what price per pound should the bananas be sold to give the supermarket an average markup rate on cost of 30%? (Round your answer to the nearest cent.

Answer 1

$19.38 for 100 pounds

that's 19.38 cents per pound

a 30% mark up would mean 25.194 cents per pound

30% of 100 pounds at $19.38 per pound means a profit of .3(19.38) = $5.814

but he'll only be able to sell 90 of the 100 pounds. so he needs a higher price to get an average 30% on 100 pounds or a profit of $5.814

.9P = 5.814

P = 5.814/.9 = $6.46 price for 90 pounds

6.46/90 = 7.18 cents profit per pound

19.38 + 7.18 = 26.56 cents price per pound

round off to 27 cents a pound price

to keep a 30% markup over 19.38 cents cost per pound