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 - With LMS CengageNOW

8th Edition

ISBN: 9781337125468

Author: Brechner

Publisher: Cengage

See similar textbooks

Concept explainers

Inverse Normal Distribution

The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of tw…

Mean, Median, Mode

It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency o…

Z-Scores

A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow compar…

Videos

Question

Chapter 8.III, Problem 16TIE

To determine

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.

Expert Solution & Answer

Chapter 8 Solutions

Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

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...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

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.

Concept explainers

Videos

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