While cultivating a small farm, a farmer spent $50 on corn seeds, $35 on fertilizers and pesticides, and $15 on labor. After a successful harvest, he was able to gather 10 bags of corn. How much should he sell each bag, if he wants to make a profit of 10%?
Thoughts? Step-by-step reasoning:
His total expenditure so far is $50 + $35 + $15 = $100. To make a profit of 10%, he has to make a total of $100 + ($100 * (10 / 100) = $110 from sales. To make $110 from the sales of 10 bags, each bag should cost $110 / 10 = $11.
Thus, the answer is 11.