The Sweet Candy Shop buys 600 pounds of chocolate covered strawberries at $5.59 per pound. If a 10% spoilage rate is anticipated, at what price per pound should the strawberries be sold in order to achieve a 60% markup based on cost?
To find the price per pound at which the strawberries should be sold, we need to calculate the total cost of the strawberries purchased and then determine the selling price.
Step 1: Calculate the total cost of the strawberries purchased:
The Sweet Candy Shop buys 600 pounds of chocolate-covered strawberries at $5.59 per pound. So, the total cost is:
Total Cost = 600 pounds * $5.59/pound = $3354
Step 2: Determine the cost after spoilage:
A 10% spoilage rate is anticipated, so we need to subtract 10% of the purchased strawberries from the total cost:
Spoilage amount = 10% * 600 pounds = 0.1 * 600 pounds = 60 pounds
Cost after spoilage = Total Cost - Spoilage amount = $3354 - (60 pounds * $5.59/pound) = $3354 - $335.40 = $3018.60
Step 3: Calculate the markup cost:
The question requires a 60% markup based on cost, which means the selling price should be 60% more than the cost after spoilage. Let's calculate the markup cost:
Markup Cost = 60% * Cost after spoilage = 0.6 * $3018.60 = $1811.16
Step 4: Determine the selling price per pound:
To find the selling price per pound, we divide the markup cost by the total amount of strawberries retained after spoilage:
Selling Price per Pound = Markup Cost / (600 pounds - Spoilage amount) = $1811.16 / (600 - 60) pounds = $1811.16 / 540 pounds = $3.35 (rounded to two decimal places)
Therefore, the strawberries should be sold at approximately $3.35 per pound to achieve a 60% markup based on cost.
To find the price per pound at which the strawberries should be sold, we first need to calculate the cost of the strawberries to the Sweet Candy Shop.
The Sweet Candy Shop buys 600 pounds of chocolate-covered strawberries at $5.59 per pound, so the total cost can be calculated as follows:
Total cost = 600 pounds × $5.59/pound
Next, we need to take into account the anticipated spoilage rate of 10%. This means that 10% of the purchased strawberries will go bad and cannot be sold. Therefore, the actual amount of strawberries available for sale will be 90% of the purchased amount.
Actual amount available for sale = 90% of 600 pounds
Now, we can calculate the cost of the strawberries per pound:
Cost per pound = Total cost / Actual amount available for sale
To achieve a 60% markup based on the cost, we need to add 60% of the cost per pound to the cost per pound:
Selling price per pound = Cost per pound + 60% of Cost per pound
Now, let's plug in the numbers to find the selling price per pound:
1. Calculate the total cost:
Total cost = 600 pounds × $5.59/pound
2. Calculate the actual amount available for sale:
Actual amount available for sale = 90% of 600 pounds
3. Calculate the cost per pound:
Cost per pound = Total cost / Actual amount available for sale
4. Calculate the selling price per pound:
Selling price per pound = Cost per pound + 60% of Cost per pound
By following these steps, you will be able to find the price per pound at which the strawberries should be sold to achieve a 60% markup based on cost.