Question

It costs $5,400 to manufacture a Jet Ski. If the desired percent markup based on cost is 44%, how much should each Jet Ski sell for?

The markup on a desk should be 32% based on selling price. If the seller paid $280 for one, then how much should it sell for to achieve the desired markup?

A markup of 33% based on cost is desired for a load of 600 bushels of peanuts. They were purchased at $5.85 per bushel. What should the selling price per bushel be after adjusting for an anticipated 23% spoilage rate? (Round answer to the nearest cent.)

Answer 1

1). Selling price of one Jet Ski = cost*(1+markup) = 5,400*(1+44%) = 7,776

2). Selling price of one desk = cost/(1-markup) = 280/(1-32%) = 411.76

3). Number of bushels after spoliage = 600*(1-spoilage rate) = 600*(1-23%) = 462 bushels

Cost per bushel = 5.85

Price per bushel = 5.85*(1+markup) = 5.85*(1+33%) = 7.7805 per bushel

Total price = number of bushels*price per bushel = 600*7.7805 = 4,668.30

Selling price per bushel = total price/number of bushels after spoilage = 4,668.30/462 = 10.10 per bushel