A markup of 33% based on cost is desired for a load of 800 bushels of peanuts. They were purchased at $5.85 per bushel. What should the selling price per bushel be after adjusting for an anticipated 21% spoilage rate? (Round answer to the nearest cent)
A) $7.78
B) $3.91
C) $10.56
D) $9.85

Question

Quizplus · Accepted Answer

To find the selling price per bushel, first calculate the cost per bushel including spoilage: $5.85 / (1 - 0.21) = $7.41. Then, apply the 33% markup: $7.41 * 1.33 = $9.85.

A Markup of 33% Based on Cost Is Desired for a Load