Question

McSaw’s Ice Cream makes muffins that cost $.60 each. Past experience shows that 10% of the muffins will become stale and have to be discarded. Assume McSaw wants a 55% markup based on cost and produces 100 muffins. What should each muffin sell for? Round to nearest cent.

Answer 1

well, due to that 10% of the muffins get wasted and do not sell,
plus work that goes into it, the price of the ice-cream is not 0.60,
but 55% more, or markup above that cost value

so... how much would each muffin sell for? well, each muffin will be,
0.60 + 55% of 0.60

how much is 55% of 0.60?

`{{ 55}}\%\ of\ 0.60 \implies \cfrac{{{ 55}}}{100}\cdot 0.60\implies {{ 55}}/ 100\cdot 0.60`

get the 55%, and add it to the 0.60, that's how much each will sell for