Question

2. Sunshine Bakery bakes 660 loaves of bread each day and estimates that 10% of the bread will go stale before it is

sold and thus will have to be discarded. The owner of the bakery wishes to realize a 55% markup on cost on the
bread. If the cost to make a loaf of bread is $0.46, what should the owner sell each loaf for?

Answer 1

$0.79

Step-by-step explanation:

The Bakery bakes 660 loaves of bread

The cost of baking one bread= $0.46

The total cost of baking all loaves of bread

= $0.46 x 660

=$303.60

The desired mark up is 55% of cost

=55% of $303.60

=55/100 x $303.60

=0.55 x $303.60

= $166.98

Desired revenues = $166.98 +$303.60

=$470.58

The number of sellable breads= 660 - (10% of 660)

=660-66

=594

Desired income is $470.58; sellable output is 594.

price per bread should be

=$470.58/594

=$0.79222

Price per bread = $0.79