SOLUTION: Basit recieves 400kg of guavas for which he pays $0.75 per kg. on average 8% of them will spoil. find the selling price per kg to obtain a 75% profit on cost?

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Question 540888: Basit recieves 400kg of guavas for which he pays $0.75 per kg. on average 8% of them will spoil. find the selling price per kg to obtain a 75% profit on cost?
Answer by jpg7n16(66) About Me  (Show Source):
You can put this solution on YOUR website!
Cost=400kg%2A0.75=300
Sellable=400kg%2A%281-.08%29=400kg%2A.92=368kg
CostPerSellable=300%2F368=0.81522
ProfitPercentageOnCost=%28SalesPrice-Cost%29%2FCost
To obtain a 75% profit on cost, you would then plug your cost and solve for the sales price.

0.75=SalesPrice%2F0.81522-1
1.75=SalesPrice%2F0.81522
1.75%2A0.81522=SalesPrice
SalesPrice=1.4266=$1.43