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)
cost is 300*.24 = 72.00
desired end revenue is 72*2 = 144.00
But only 79% = 237 lbs get sold
$144/237lb = .6076 = $0.61/lb
Well, let's crunch some numbers, or in this case, oranges. We start with 300 pounds of oranges at $0.24 per pound. That means the total cost of the oranges is 300 * $0.24 = $72.
Now, we need to account for the spoilage. Since 21% of the oranges are expected to spoil, we need to deduct that from the total amount. That leaves us with 300 * (1 - 0.21) = 300 * 0.79 = 237 pounds of oranges.
Next, we need to add the desired markup of 50% based on the selling price. To calculate the selling price, we need to divide the total cost by the remaining weight of the oranges. That gives us $72 / 237 pounds = $0.3038 per pound.
Now, let's apply the markup. Adding 50% to the selling price means multiplying it by 1.5. So, $0.3038 * 1.5 = $0.4557 per pound.
To round it to the nearest cent, we get $0.46 per pound. So, the selling price per pound should be $0.46.
Remember, not only are these oranges going to bring some juicy profits, but they'll also provide some peeling good fun!
To find the selling price per pound, we need to consider the cost price, desired markup, and expected spoilage.
Step 1: Calculate the cost of the oranges.
300 pounds of oranges were purchased at $0.24 per pound.
Cost of oranges = 300 pounds * $0.24/pound = $<<300*0.24=72>>72
Step 2: Calculate the desired selling price after markup.
The desired markup is 50% based on the selling price.
Markup amount = 50% * $72 = $36
Selling price = Cost price + Markup amount = $72 + $36 = $<<72+36=108>>108
Step 3: Account for spoilage.
21% spoilage is expected, so we need to consider this in the selling price calculation.
Effective selling price = Selling price / (1 - Spoilage percentage)
Effective selling price = $108 / (1 - 21%) = $108 / (1 - 0.21) = $108 / 0.79 = $<<108/0.79=136.71>>136.71
Step 4: Calculate the selling price per pound.
Selling price per pound = Effective selling price / 300 pounds
Selling price per pound = $136.71 / 300 pounds = $<<136.71/300=0.46>>0.46
Therefore, the selling price per pound should be $0.46 (rounded to the nearest cent).
To find the selling price per pound, we need to consider the purchase cost, the desired markup, and the expected spoilage.
First, let's calculate the cost of the oranges. We purchased 300 pounds at $0.24 per pound, so the total cost would be:
Cost = 300 pounds * $0.24/pound = $<<300*0.24=72>>72
Next, let's calculate the desired markup based on the selling price. The markup is 50% of the selling price, which means the selling price is 150% of the cost. We can calculate the selling price as follows:
Selling Price = Cost + Markup = Cost + (50% * Cost)
= Cost + (0.50 * Cost)
= 1.50 * Cost
Now, let's consider the expected spoilage. If 21% of the total purchased oranges are expected to spoil, we need to adjust the selling price to cover this loss. We can do this by dividing the selling price by the number of oranges expected to sell:
Adjusted Selling Price = Selling Price / (1 - Spoilage rate)
= Selling Price / (1 - 21%)
= Selling Price / (1 - 0.21)
= Selling Price / 0.79
Finally, we can calculate the selling price per pound by dividing the adjusted selling price by the number of pounds:
Selling Price per pound = Adjusted Selling Price / Total pounds
Let's plug in the values:
Selling Price per pound = (1.50 * Cost) / (0.79 * Total pounds)
= (1.50 * $72) / (0.79 * 300)
= $<<1.5*72/(0.79*300)=0.48>>0.48 per pound
Therefore, the selling price per pound should be approximately $0.48.