Statistics Help
Question: The Flour Power Bakery makes 200 cherry cheesecakes at a cost of $2.45 each. If a spoilage rate of 5% is anticipated, at what price should the cakes be sold to achieve a 40% markup based on cost? Edit
Answer: Total cost price of 200 cherry cakes at a cost of $2.45 each is 200*2.45=490
its anticipated spoilage rate 5% of 200 cakes
i.e 190.
we have to achieve 40% mark up based on cost
i.e 490*(40/100)=196
so, total cost will be (490+196)=686
price should be sold out at 686/190=3.610 to achieve 40% markup based on cost.(ans) Edit
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