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A grocer has purchased a truckload of frozen dinners for $2 each. The grocer operates on...

A grocer has purchased a truckload of frozen dinners for $2 each. The grocer operates on a margin of 20% for frozen food items (the retailer uses the retail mark-up formula). What is the retail price to the consumer?

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Answer #1

Retail price = Cost + % of markup * cost

= $2 +( 20/100)*2 = $2.4

Therefore, the retail price for the consumer is $2.4

This is the price that grocer has set.

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