I keep getting this answer: $1.6116 to this question!! What should the answer be?
Every week, a store buys 30 gallons of milk at a cost of $1.58 per gallon. The owner anticipates a 15% spoilage rate. In order to achieve a 20% markup based on selling price, what should be the selling price per gallon? Round your answer to the nearest
cent.
A. $1.66 C. $2.19
B. $1.98 D. $2.32
Thanks
2006-10-12 05:57:01 · 4 answers · asked by dwali20 2 in Education & Reference ➔ Other - Education
I am getting 1.95....
here it goes...
You need to find the orginial cost 30*1.58=47.4 but 15% of these are going to spoil so they are only able to sell 25.5 gallons...so to get the 20% markup, found the mark up of the original coast 47.4*.20=9.48. If I only sell 25.5 gallons (40.29) and add my mark up (9.48) and divide it by the 25.5 gallons I can sell, I get 1.95..
good luck
2006-10-12 06:02:52 · answer #1 · answered by twinangels 1 · 0⤊ 0⤋
This is a trick question.. seriously.
The question asks "In order to achieve a 20% markup..." meaning that its asking what the final price of the milk should be per gallon once they mark it up 20%. The 30 gallons and the 15% spoilage rates are irrelevant to this problem. What is relevant is the price of the milk when they buy it and the price of the milk when they mark it up.
But when I look at the question again, I noticed that it asks about the markup based on the SELLING price which is not given. So I am assuming that they mean the wholesale price.
2006-10-12 13:08:14 · answer #2 · answered by Joe K 6 · 0⤊ 0⤋
Answer C. $2.19
30 x 1.58 = 47.40
15% of 47.40 = 7.11
7.11+47.40=54.51
20% of 54.51 =10.90
10.90+54.51=65.41
65.41 divided by 30 = 2.19
2006-10-12 13:35:22 · answer #3 · answered by shorte716 6 · 0⤊ 0⤋
I am getting $1.66
2006-10-12 13:15:42 · answer #4 · answered by shana j 2 · 0⤊ 0⤋