Carcass wrote:
A shopkeeper purchases birdfeeders for $10 each and sells them for $18 each. If the cost of the feeders increases by 50% for two months in a row, what is the smallest percent increase the shopkeeper can apply to the selling price in order to avoid selling at a loss?
Enter your value as %We have two times increase in birdfeed price:
for 1st $10 we have \(10+50*\frac{10}{100}\) = 15
For 2nd price increase we have \(15+15*\frac{50}{100}\) = 22.5
Now smallest % increase in Selling price should be = \(\frac{(22.5 -18)}{18} *100\) = 25%
I AM a little confused since the cost rises in 2 month in a row, don't we have to consider how much percent increase in ONE month?