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 x be the cost price of the bananas per kg.
Total cost price = 100kg * x
10% of bananas are spoiled, so the grocer can sell 90kg of bananas.
He wants to markup the price by 50%, so the selling price per kg is 1.5 * x.
Total selling price = 90kg * 1.5x
According to the information given, the selling price is RM3.00 per kg.
Therefore:
90kg * 1.5x = 90kg * RM3.00
135x = RM270
x = RM2.00
So, the bananas cost RM2.00 per kg.