Asked by Danalakota Santhosh on Jul 15, 2024
Verified
Loblaws purchases raisins at $85.75 per 25-kg box and then sells them in its bulk foods department for $0.59 per 100 g. What is Loblaws rate of mark-up on cost and rate of mark-up on selling price of the raisins?
Raisins
Dried grapes often used in cooking and baking or eaten as a snack.
Mark-up
The gap between the acquisition cost of a product or service and the price at which it's sold, calculated as a fraction of the initial cost.
- Calculate the difference (markup) between the cost and selling price.
- Determine the ratio of markup based on selling price in comparison to the markup calculated from cost.
Verified Answer
MW
mahdi washmehJul 16, 2024
Final Answer :
Rate of mark-up on cost = 72.01%; Rate of mark-up on selling price = 41.86%
Learning Objectives
- Calculate the difference (markup) between the cost and selling price.
- Determine the ratio of markup based on selling price in comparison to the markup calculated from cost.