Niall buys a 3kg box of sweets at the wholesalers for £17.60.
He splits the sweets up and puts them into bags to sell.
Each bag contains 150g of sweets.
Niall fills as many bags as possible.
He will sell each bag for the same price.
Niall wants to make a profit (mark-up) of at least 35%.
Assuming he sells all the bags, what’s the lowest price he can sell each one at?
Answer:
Firstly we can find out how many bags 3kg of sweets would make by doing:
3000g/150g = 20 bags
We can also find out how much each bag costs to make by doing:
17.60/20 = £0.88
If Niall wants to make 35% profit we can multiply 0.88 by 1.35
0.88 x 1.35 = £1.19