Adam buys 500kg of cucumber to sell in his shop. Based on previous record, there was 10% spoilt cucumber that can’t be sold. The price of the cucumber is set at RM 2.80 per kg in order to markup of 30% on overall cost. Calculate the cost price per kg.

1 answer

First, we need to calculate the total amount of cucumber that will be sold after taking into account the spoiled cucumber:

Total amount of cucumber = 500kg
Spoilt cucumber = 10% of 500kg = 0.10 * 500 = 50kg
Good cucumber = 500kg - 50kg = 450kg

Next, we need to calculate the overall cost of the good cucumber:

Selling price per kg = RM 2.80
Markup = 30%
Cost price per kg = Selling price / (1 + Markup)
Cost price per kg = RM 2.80 / (1 + 0.30)
Cost price per kg = RM 2.80 / 1.30
Cost price per kg = RM 2.15

Finally, we calculate the total cost of the good cucumber:

Total cost = Cost price per kg * Amount of good cucumber
Total cost = RM 2.15 * 450kg
Total cost = RM 967.50

Therefore, the cost price per kg for the good cucumber that Adam will sell in his shop is RM 2.15.