Question

Costs of retailer selling a quintal of mango Sorting and grading 200 Transportation 300 Loading and unloading 100 Charges towards labor 100 Misc. charges 150 Consumer purchased 1 kilogram of mango for $4. Retailer purchased one quintal of mango for $200 Calculate MARK-UP OF RETAILER FOR ONE KILOGRAM OF MANGO

NOTE: PLEASE ANSWER ACCURATELY ONLY IF YOU KNOW. I AM GETTING LOT OF WRONG ANSWERS ON CHEGG. I AM POSTING IT FOR THE SECOND TIME. SOMEONE ANSWERED IT WRONG. IF YOU DO NOT KNOW HOW TO CALCULATE THEN LEAVE IT.  

Answer 1

Given:

Costs of retailer selling a quintal of mango

Sorting and grading	200
Transportation	300
Loading and unloading	100
Charges towards labor	100
Misc. charges	150

Consumer purchased 1 kilograms of mango for $4.

Retailer purchased one quintal of mango for $200

Formula to calculate percentage marketing margin of retailer is [PRi - (PPi + Cmi)/PPi] * 100

Where PRi is selling price; PPi is purchase price and Cmi is cost incurred on marketing one unit.

PRi is $4 (consumer purchased at $4 that means selling price of retailer is $4)

PPi is $2 (retailer purchased 1 quintal at $200. One quintal is 100 kilograms; therefore purchase price for one kilogram of mango is 200/100= $2)

Cmi is $7.5 (costs of retailer for marketing a mango are given in quintal; they have to be converted into costs per kilogram. Therefore costs are 2+ 3+ 1+ 1+ 1.5= 8.5)

Percentage margin of retailer = [4- (2+8.5)/2] * 100= 325

Therefore, percentage margin of a mango retailer is 325