Question

Arley’s Bakery makes fat-free cookies that cost $1.50 each. Arley expects 30% of the cookies to fall apart and break. Assume that Arley can sell the broken cookies for $1.40 each. Arley wants a 50% markup on cost and produces 200 cookies. What price should Arley charge for each unbroken cookie?

Answer 1

First we see the cost of making 200 cookies:
(200) * (1.50) = 300 $
Then, we see the amount of cookies that are not broken:
(200) * (0.30) = 60
200-60 = 140
Arley wants to 50% markup on cost and produces 200 cookies:
(300) * (1.50) = 450 $
Arley can sell the broken cookies for $ 1.40 each:
(1.40) * (60) = $ 84
For each unbroken cookie the price will be then:
(450-84) / (140) = 2.61 $
Answer:
Arley should charge $ 2.61 for each unbroken cookie