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?

Answer 1

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.