A markup of \( 40 \% \) based on cost is desired for a load of 500 bushels of peanuts. They were purchased at \( \$ 7.00 \) per bushel. What should the selling price per bushel be after adjusting for an anticipated \( 18 \% \) spoilage rate? (Round answer to the nearest cent) Select one: a. \( \$ 6.81 \) o b. \( \$ 7.75 \) o c. \( \$ 11.95 \) d. \( \$ 9.85 \)

To find the selling price per bushel after accounting for spoilage and the desired markup, we start by computing the total cost for the 500 bushels. The total cost is \( 500 \times 7.00 = \$3,500. \) With a \( 40\% \) markup on cost, the total selling price should be \( 3,500 + (0.40 \times 3,500) = \$4,900. \) Next, we calculate the effective number of bushels remaining after accounting for an \( 18\% \) spoilage rate. This means we have \( 500 \times (1 - 0.18) = 410 \) bushels left to sell. Now, we divide the total desired selling price by the expected remaining bushels: \[ \text{Selling price per bushel} = \frac{4,900}{410} \approx \$11.95. \] Thus, the correct answer is \( c. \, \$11.95. \) Have you ever wondered how different historical prices of crops influenced the market? In many cases, such as during the Great Depression, the prices of essential goods fluctuated drastically. The strategies farmers used to adjust pricing were critical for survival, shaping future agricultural economics! If you're looking to apply these pricing strategies in real life, consider batch sizes and potential spoilage as key factors. A common mistake is not accounting for spoilage when setting prices, leading to losses. Always remember: Calculate your costs thoroughly, and adjust your prices accordingly to stay profitable!