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 achieve a 60% markup based on cost?

Answer 1

Answer: $9.94/pound

Shop paid: 600 lbs X $5.59 = $3,354
Assuming 10% spoilage, shop really purchased only 540 lbs at a total cost of $3,354

The cost to the shop including the spoilage = $6.21/lb

60% markup = $9.94/lb