Explanation Given Information: The quantity of roses is 800 dozen, the price of roses per dozen is $ 6.5 , the spoilage rate is 10 % and percent markup based on selling price is 60 % . Formula used: The cost can be computed as: Cost = Total quantity × price per dozen The selling price can be calculated using the following equation: Total expected selling price = Cost 100 % − % M S P The Anticipated spoilage is calculated using the following equation: Anticipated Spoilage = Total Quantity × Spoilage Rate The selling price of perishable goods can be calculated using the following equation: Selling Price of perishables = Total expected selling price Total quantity − Anticipated spoilage Calculation: Consider the provided data, The quantity of roses is 800 dozen, the price of roses per dozen is $ 6.5 , the spoilage rate is 10 % and percent markup based on selling price is 60 % . The problem can be solved in 3 steps as follows: Step 1. The cost of roses is: Cost = Total quantity × price per dozen Substitute the values of total quantity and price of roses per dozen in the above formula, Cost = Total quantity × price per dozen = 800 × 6.5 = 5 , 200 Thus, the cost of 800 dozen roses is $ 5 , 200 . The formula for total expected selling price is, Total expected selling price = Cost 100 % − % M S P Substitute cost = $ 5 , 200 and % M S P = 60 % in the above formula, Total expected selling price = Cost 100 % − % M S P = 5 , 200 100 % − 60 % = 5 , 200 40 % = 5 , 200 0

Contemporary Mathematics For Business & Consumers, Loose-leaf Version

8th Edition

ISBN: 9781305867185

Author: Robert Brechner, Geroge Bergeman

Publisher: South-Western College Pub

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Chapter 8.III, Problem 16TIE

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To calculate: The selling price per pound of roses to achieve 60% markup based on selling price if the quantity of roses is 800 dozen, the spoilage rate is 10%, price per dozen is $6.5.

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Chapter 8 Solutions

Contemporary Mathematics For Business & Consumers, Loose-leaf Version

Ch. 8.I - For the following, use the basic retailing...Ch. 8.I - For the following, use the basic retailing...Ch. 8.I - Prob. 3TIE Ch. 8.I - Prob. 4TIE Ch. 8.I - Prob. 5TIE Ch. 8.I - Prob. 6TIE Ch. 8.I - Prob. 1RE Ch. 8.I - For the following items, calculate the missing...Ch. 8.I - Prob. 3RE Ch. 8.I - For the following items, calculate the missing...

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The selling price per pound of roses to achieve 60 % markup based on selling price if the quantity of roses is 800 dozen, the spoilage rate is 10 % , price per dozen is $ 6.5 .

Solution Summary: The author explains how to calculate the selling price per pound of roses to achieve the 60% markup based on selling prices.

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To calculate: The selling price per pound of roses to achieve 60% markup based on selling price if the quantity of roses is 800 dozen, the spoilage rate is 10%, price per dozen is $6.5.

Chapter 8 Solutions