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

Cost=600Lbs * 5.59/Lb. + 60Lbs*5.59/Lb.
= $3689.40

P = 3689.40 + 0.6*3689.40 = $5903.04 =
Selling Price for 600 Lbs.

$5903.04/600Lbs. = $9.84/Lb.

Answer 2

Correction:

Cost = 600Lbs * 5.59/Lb. = $3354.

A = 3354 + 0.6*3354 = $5366.40 = Amt.
to be received for 60% markup.

A = (600-60)Lbs. * $D/Lb. = 5366.40
540D = 5366.40
D = $9.94/Lb. to allow for 10% spoilage.