Question

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?

Answer 1

if sold at price p, we need the revenue from 90% of the 600 lbs to be 1.60 times the cost of 600 lbs at $5.59:

600(1-.10)p = 600*5.59*1.60
p = $9.94

Answer 2

$10.00