Question

McSaw’s Ice Cream makes muffins that cost $.60 each. Past experience shows that 10% of the muffins will become stale and have to be discarded. Assume McSaw wants a 55% markup based on cost and produces 100 muffins. What should each muffin sell for? Round to nearest cent.

Answer 1

.60×.55=.33 cent mark up to original price
.60+.33=.93 cost per muffin

.6×100=60×.55=93 cost for 100 muffins
93/100= .93 cost per muffin