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?
Cost=600Lbs * 5.59/Lb. + 60Lbs*5.59/Lb.
= $3689.40
P = 3689.40 + 0.6*3689.40 = $5903.04 =
Selling Price for 600 Lbs.
$5903.04/600Lbs. = $9.84/Lb.
Correction:
Cost = 600Lbs * 5.59/Lb. = $3354.
A = 3354 + 0.6*3354 = $5366.40 = Amt.
to be received for 60% markup.
A = (600-60)Lbs. * $D/Lb. = 5366.40
540D = 5366.40
D = $9.94/Lb. to allow for 10% spoilage.
To solve this problem, we need to follow a few steps:
Step 1: Calculate the total cost of the strawberries.
The Sweet Candy Shop bought 600 pounds of chocolate-covered strawberries at $5.59 per pound. So the total cost, without accounting for spoilage, can be calculated as follows:
Total Cost = 600 pounds * $5.59/pound
Step 2: Calculate the anticipated spoilage rate.
A spoilage rate of 10% is anticipated. To find out how many pounds of strawberries will be spoiled, we can calculate 10% of the total amount:
Spoilage = 10% * Total Cost
Step 3: Calculate the actual cost of the strawberries after spoilage.
The actual cost is the total cost minus the spoilage:
Actual Cost = Total Cost - Spoilage
Step 4: Calculate the desired selling price.
We want to achieve a 60% markup based on cost. To calculate the selling price per pound, we need to add the markup to the actual cost:
Selling Price = Actual Cost + (Actual Cost * Markup)
Step 5: Calculate the required selling price per pound.
Finally, we can calculate the required selling price per pound by dividing the total selling price by the total quantity of strawberries (accounting for the anticipated spoilage):
Required Selling Price = Selling Price / (600 pounds - Spoilage)
Let's plug in the numbers and calculate the answer.