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?
Let's assume the cost of the bananas per kg is x.
The grocer buys 100kg of bananas, so the cost of the bananas is 100x.
Experience indicates that 10% of the bananas will spoil, so only 90% of the bananas will be sold.
To obtain a markup of 50% on the overall cost, the selling price per kg is RM3.00.
Let's calculate the cost of the bananas per kg:
Selling price per kg = Cost per kg + Markup per kg
RM3.00 = x + 0.5x
RM3.00 = 1.5x
x = RM3.00 / 1.5
x = RM2.00
Therefore, the bananas cost RM2.00 per kg.