A grocer buys 100kg of bananas to sell. Experience indicates that about 10% of these bananas will
be spoilt before they are sold. To obtain a markup of 50% on overall cost, he prices the bananas at
RM3.00 per kg. How much do the bananas cost per kg?
First, let's find out how many bananas will be spoiled before they are sold:
100 kg x 10% = 10 kg
So, there will be 10 kg of bananas spoiled.
This means the grocer will be able to sell 90 kg of bananas.
Now, the overall cost can be calculated as follows:
Cost = ((100 kg - 10 kg) x cost per kg) / (1 + markup percentage)
Cost = (90 kg x cost per kg) / 1.50
Given that the price per kg is RM3.00 and the markup is 50%, we can substitute these values into the equation:
RM3.00 = (90 kg x cost per kg) / 1.50
RM3.00 x 1.50 = 90 kg x cost per kg
RM4.50 = 90 kg x cost per kg
cost per kg = RM4.50 / 90 kg
cost per kg = RM0.05
Therefore, the bananas cost RM0.05 per kg.