I need to know how the case study 9-3 Deer Valley Organics, LLC is worked out. Deer Valley determined that the cost of these apples was 64 cents per pound. 1) What would be the selling price per pound for the prepackaged apples using a 30% markup based on cost? A 40% markup? A 50% markup?
2) Based on the national average for apples sold on retail basis, Deer Creek sets a target price of $1.10 per pound for the prepackaged apples. Using this selling price, comput the percent of markup based on cost for the prepackaged apples. Then, compute the percent of markup based on selling price.
3) Deer Valley allows customers to pick their own apples for $8 a bag, which works out to approximately 47 cents per pound. How is this possible given the cost data in the introductory paragraph? Would the orchard be losing money? Explain.
4) Deer Valley receives a delivery of 1, 250 lb. of tomatoes from a local supplier, for which they pay 18 cents per pound. Normally, 6% of the tomatoes will be discarded because of apperance or spoilage. Find the selling price needed per pound to obtain a 120% markup based on cost.