The Spoilage Rate on a Shipment of 100 Pounds of Bananas

Multiple Choice

The spoilage rate on a shipment of 100 pounds of bananas is expected to be 20%. They were purchased at a cost of $0.23 per pound. What should the selling price per pound be to achieve a markup of 16% based on selling price? (Round answer to the nearest cent)

A) $0.34
B) $0.39
C) $0.24
D) $0.30