Question

Check My Work (No more tries available) Solve the following word problem, rounding dollars to the nearest cent. The Flour Power Bakery makes 280 cherry cheesecakes at a cost of $2.51 each, If a spoilage rate of 30% is anticipated, at what price should the cakes be sold to achieye a 65% markup based on cost? Do not enter units in your answer 10.24 per cheesecake

Answer 1

5.92 per cheesecake.

Explanation:

The initial number cherry cheesecakes = 280,

Also, the cost of each cheesecakes = $ 2.51,

So, the total cost price = 280 × 2.51 = $ 702.8,

Markup = 65 %,

Thus, the total selling cost = 702.8 + 65% of 702.8 = $ 1159.62,

Now, the spoilage rate = 30 %,

So, the total new number of cheesecakes = 280 - 30% of 280 = 280 - 84 = 196,

Hence, the selling cost of each cheesecake =
`(1159.62)/(196)`

`=\$ 5.91642857143`

`\approx \$ 5.92`