Question
A grocery store buys 30 gallons of milk at a cost of $1.58 per gallon. The owner expects a 15% spoilage rate. To achieve a 20% markup based on cost, what should be the selling price per gallon? Round to the nearest cent/
Answers
Henry
Cost = 30gal * 1.58/gal. = $47.40.
Income = 1.20 * 47.40 = $56.88 for 20%
markup.
Gal. for sale = 0.85 * 30 = 25.5 .
Selling price = $X/gal'
25.5gal * $X/gal = $56.88.
X = 56.88 / 25.5 = $2.23 = Selling price per gal.
Income = 1.20 * 47.40 = $56.88 for 20%
markup.
Gal. for sale = 0.85 * 30 = 25.5 .
Selling price = $X/gal'
25.5gal * $X/gal = $56.88.
X = 56.88 / 25.5 = $2.23 = Selling price per gal.