Скачать или смотреть How To Calculate The Selling Price On Perishables Items Explained

In this video we discuss how to to calculate the selling price per item on perishable items. We go through a detailed example explaining each of the steps to get the selling price

Transcript/notes
Let’s say that a business sells muffins, which are a perishable item. Meaning some of them will spoil and cannot be sold. This must be considered when determining the selling price for perishable items.

As an example of calculating the selling price for perishables, let’s say that a store sells muffins, the cost is $1.06 per muffin. The store bakes 120 muffins and needs a 50% markup on selling price and 10% of the muffins will remain unsold. What is the selling price per muffin?

We are going to start by drawing a table with percentages and total dollar amounts for cost, markup and selling price, and we will fill in what we know. We know the markup on selling price is 50%, and since it is markup based on selling price, the selling price percent will be 100%.

And we can also calculate the percent cost on selling price, which is 100%, the selling price percent, minus 50%, the markup percent, which gives us 50% as the percent cost on selling price, which we can put in the table. On the right side of the table are the total dollar amounts for all 120 muffins, and we will fill this in as we go.

There are going to be 4 steps to solving a problem like this.

Step 1 is to calculate the total cost of the muffins, so, all 120 muffins. The total cost will equal the 120 muffins, times $1.06 per muffin. So, the total cost equals $127.20, and we can put that in the table.

Step 2 is to find the total selling price of the muffins before factoring in the 10% of the muffins that will not be sold, and I will explain this more in depth in a minute. Since we now know the total cost amount and the percent cost on selling price, to find the total selling price we can use the formula for the percent cost based on selling price, which is the percent cost on selling price equals the total cost amount divided by the total selling price amount. Plugging into the formula we have 50% equals, $127.20, the total cost amount divided by S, the total selling price. We first change 50% to a decimal, and then do the calculations, which I have done on the screen, and we get a total selling price of $254.40. We can put this in the table and step 2 is complete.

However, this $254.40 total selling price is for all 120 of the muffins being sold. But, we know that 10% of the 6 packs of muffins will remain unsold, so, we need to account for this in the selling price.

Which leads us to step 3, find the total number of muffins that will be sold. Since 10% will not be sold, the percent of muffins that will be sold is 100% minus 10%, which equals 90%. Next, we want to find the amount of 90% of the 120 muffins made. This is 90% times 120, or .9 times 120, which equals 108. So, of the 120 muffins baked, 108 of them will sell, and 12 will remain unsold.

Next is step 4, to find the total selling price per muffin after the 10% not being sold. We know that the total selling price we need to get for the muffins, from the table is $254.40. Since we are only going to sell 108 of the muffins, we divide $254.40, the total selling price by 108, which calculates to $2.36 rounded off per muffin.

So, to answer the question, we need to have a $2.36 selling price per muffin. And one note, what we are doing here is accounting for the loss of the 12 muffins.

Chapters/Timestamps
0:00 What are perishables?
0:11 Example problem set up
0:29 Draw a table and list what is known
1:10 Step 1, calculate the total cost for all items (muffins)
1:28 Step 2, find total selling price for all items (muffins)
2:19 Step 3, find total number of items that will be sold
3:03 Step 4, find selling price per item (muffin)
3:29 Conclusion