Question

alana is the owner of great cookie. she spent $100 on the eggs, $50 on the flour, $45 on milk, $10 on utilities, and $60 on wages to produce 200 cookies. She sells her cookies for $1.50 each. Calculate the value added per cookie?

Answer 1

The value added per cookie is $0.175.

Step-by-step explanation:

In order to obtain the value added per cookie, we have first to calculate how much did she spend for producing each cookie. She spent a total of $265 on the cookies production (
`100+50+45+10+60`). So, if she obtained a total of 200 cookies, the cost per cookie is equal to $1.325 (
`265:200`). Finally, the value added per cookie is
`1.5-1.325=0.175`.