Country Produce knows that 20% of the strawberries purchased will spoil and must be thrown out. If they buy 200 baskets of strawberries for $0.24 per basket and want a markup of 50% on the selling price, find the selling price per basket of strawberries.
To find the selling price per basket of strawberries, we need to follow these steps:
Step 1: Calculate the cost of the strawberries.
The cost of 200 baskets of strawberries at $0.24 per basket is:
Cost = 200 baskets * $0.24/basket = $<<200*0.24=48>>48.
Step 2: Calculate the markup on the cost.
The markup on the cost is 50%, which means the selling price will be 1.5 times the cost.
Selling Price = Cost + (Cost * Markup) = $48 + ($48 * 0.5) = $48 + $24 = $<<48+48*0.5=72>>72.
Step 3: Calculate the number of strawberries that will spoil.
20% of the strawberries purchased are expected to spoil. Therefore, the number of strawberries that will spoil is:
Spoiled Strawberries = 200 baskets * 0.20 = 40 baskets.
Step 4: Calculate the number of good strawberries.
The number of good strawberries will be the total number of baskets minus the number of spoiled baskets:
Good Strawberries = 200 baskets - 40 baskets = 160 baskets.
Step 5: Calculate the selling price per basket.
To find the selling price per basket, we divide the total selling price by the number of good baskets:
Selling Price per Basket = Selling Price / Good Strawberries = $72 / 160 baskets ≈ $<<72/160=0.45>>0.45.
Therefore, the selling price per basket of strawberries is approximately $0.45.