SOLUTION: Every week, a grocery store buys 30 gallons of milk as a cost of $1.58 per gallon. The store owner anticipates a 15% spoilage rate. In order to achieve a 20% markup based on sellin
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Question 182313: Every week, a grocery store buys 30 gallons of milk as a cost of $1.58 per gallon. The store 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 rounded to the nearest cent? Answer by Mathtut(3670) (Show Source):
You can put this solution on YOUR website! 30(.15)=4.5 gallons of spoilage
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30-6=25.5....number of gallons that can be sold due to spoilage
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cost is 30 * 1.58 = $47.4
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markup is 47.4+47.4(.2)=47.4+5.48= 52.88.....this is the markup amount at 20% markup
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so now we need to divide the markup by the number of gallons we can sell to find out price per gallon
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52.88/25.5=$2.07/gal
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