Question

Angie’s Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 10% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 100 cookies. Assume that Angie can sell the cracked cookies for $1.10 each. What should Angie price each cookie?

Answer 1

$ 3.43

Step-by-step explanation:

Given,

Total cookies = 100,

Cost price of each cookie = $ 2,

So, the total cost price = $ 200,

After marking up the price by 60%,

Total selling price = (100+60)% of 200

= 160% of 200

`=(160* 200)/(100)`

= $ 320

Out of 100 cookies 10% are cracked or discarded,

Thus, the cracked cookies = 10% of 100

=
`(10* 100)/(100)`

= 10,

Then, the simple cookies = 100 - 10 = 90,

The price of each cracked cookie = $ 1.10

So, the selling price of cracked cookies = 1.10 × 10 = $ 11,

Now, let the price of each simple cookie = x dollars

So, the selling price of simple cookies = x × 90 = 90x dollars,

Thus, the total selling price = 90x + 11

⇒ 90x + 11 = 320

90x = 320 - 11

90x = 309

⇒ x = 3.43

Hence, the price of each cookie should be $ 3.43.