Question

Belle's Bake Shop makes croissants that cost $1.75 each. Past experience shows that 10% of the croissants will spoil and have to be discarded. Assuming Belle wants a 45% markup based on cost and produces 300 croissants, each croissant should sell fo

Answer 1

You have to take into account that you made 300 croissants at a cost of $1.75 each but you are only able to sell 90% of them or 270. So you want to sell each croissant at a price where 270 x price =1.45 x cost to make 300 bagels or:270×P=1.45(300×1.75)