Question

Angie's Bake Shop makes birthday chocolate chip cookies that cost $3 each. Angie expects that 10% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 80 cookies. What should Angie price each cookie? (Round your answer to the nearest cent.)

Answer 1

Answer:

Cost of selling price = $5.33 (Approx)

Step-by-step explanation:

Given:

Cost of price of cookie = $3 each

Number of cookies = 80

Damaged = 10%

Markup on cost = 60%

Find:

Cost of selling price

Computation:

Total cost of cookie = 80 × 3 = 240

Markup price = 240 + 240(60%)

Markup price = 384

Number of damage cookies = 80(10%) = 8

Remain cookies = 80 - 8 = 72

Cost of selling price = Markup price / Remain cookies

Cost of selling price = 384 / 72

Cost of selling price = $5.33 (Approx)