Business math help

Question

A merchant can buy apples at $0.61 per pound, but he knows that about 20% will spoil. If he needs a markup on cost of 51% for operating expenses, what should the apples sell for, per pound?

Answer 1

Your apples should be marked up to 92 cents per pound assuming no spoilage. If your spoilage loss is expected to be 20%, you probably should mark up your apples by another 12 cents to insure your overall profit achieves 51%.