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