The total revenue desired is
revenue = (cost) + 20%*(cost) = 1.20*(cost) = 1.20*($1.58/gal)*(30 gal) = $56.88
The amount of milk available for sale is
(gallons for sale) = (original amount of milk) - 15%*(original amount of milk)
= 0.85*(30 gal) = 25.5 gal
The selling price per gallon must be
selling price = $56.88/(25.5 gal) ≈ $2.23/gal
The formula ends up being
selling price/gal = (cost/gal)*(1+markup on cost)/(1 - spoilage rate)
= $1.58*1.20/0.85
revenue = (cost) + 20%*(cost) = 1.20*(cost) = 1.20*($1.58/gal)*(30 gal) = $56.88
The amount of milk available for sale is
(gallons for sale) = (original amount of milk) - 15%*(original amount of milk)
= 0.85*(30 gal) = 25.5 gal
The selling price per gallon must be
selling price = $56.88/(25.5 gal) ≈ $2.23/gal
The formula ends up being
selling price/gal = (cost/gal)*(1+markup on cost)/(1 - spoilage rate)
= $1.58*1.20/0.85