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?

1 answer

First, let's find out how many bananas will be spoiled before they are sold:

100 kg x 10% = 10 kg

So, there will be 10 kg of bananas spoiled.

This means the grocer will be able to sell 90 kg of bananas.

Now, the overall cost can be calculated as follows:

Cost = ((100 kg - 10 kg) x cost per kg) / (1 + markup percentage)
Cost = (90 kg x cost per kg) / 1.50

Given that the price per kg is RM3.00 and the markup is 50%, we can substitute these values into the equation:

RM3.00 = (90 kg x cost per kg) / 1.50
RM3.00 x 1.50 = 90 kg x cost per kg
RM4.50 = 90 kg x cost per kg
cost per kg = RM4.50 / 90 kg
cost per kg = RM0.05

Therefore, the bananas cost RM0.05 per kg.