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. Calculate the answers
To obtain a markup of 50% on the overall cost, the selling price per kg must be 150% of the cost price per kg.
Let the cost price per kg be x.
The selling price per kg is 1.5 times the cost price per kg: 1.5x = RM3.00.
Simplifying the equation, we find that the cost price per kg is x = RM3.00 / 1.5 = RM2.00.
Therefore, the bananas cost RM2.00 per kg.