Deer Valley determined that the cost of these apples was 64 cents per pound.
1. What would be the selling price per pound for the prepackaged apples using a 30% markup based on cost? A 40% markup? A 50% markup?
2. Based on the national average for apples sold on a retail basis, Deer Creek sets a target price of $1.10 per pound for the prepackaged apples. Using this selling price, compute the percent of markup based on cost for the prepackaged apples. Then, compute the percent of markup based on selling price.
Is it Selling price=.64=Markup=30%+cost
1. P1 = 0.64 + 0.30*0.64 =
P2 = 0.64 + 0.40*0.64 =
P3 =
2. P = 0.64 + m*0.64 = 1.10
0.64m = 1.10 - 0.64 = 0.46.
m = 0.719 = 71.9%.
To find the selling price per pound for the prepackaged apples, we need to apply the markup percentages on the cost.
1. Applying a 30% markup on the cost:
Selling price = Cost + (Markup % * Cost)
Selling price = 0.64 + (0.30 * 0.64)
Selling price = 0.64 + 0.192
Selling price = $0.832 per pound
2. Applying a 40% markup on the cost:
Selling price = Cost + (Markup % * Cost)
Selling price = 0.64 + (0.40 * 0.64)
Selling price = 0.64 + 0.256
Selling price = $0.896 per pound
3. Applying a 50% markup on the cost:
Selling price = Cost + (Markup % * Cost)
Selling price = 0.64 + (0.50 * 0.64)
Selling price = 0.64 + 0.32
Selling price = $0.96 per pound
Now let's move on to the second part of the question.
To compute the percent of markup based on cost for the prepackaged apples:
Markup % based on cost = (Selling price - Cost) / Cost * 100
Markup % based on cost = (1.10 - 0.64) / 0.64 * 100
Markup % based on cost = 0.46 / 0.64 * 100
Markup % based on cost = 0.71875 * 100
Markup % based on cost = 71.875%
To compute the percent of markup based on selling price for the prepackaged apples:
Markup % based on selling price = (Selling price - Cost) / Selling price * 100
Markup % based on selling price = (1.10 - 0.64) / 1.10 * 100
Markup % based on selling price = 0.46 / 1.10 * 100
Markup % based on selling price = 0.418181818 * 100
Markup % based on selling price = 41.81818%
So, the percent of markup based on cost is 71.875%, and the percent of markup based on selling price is 41.81818%.