Question

Arley’s Bakery makes fat-free cookies that cost $1.50 each. Arley expects 15% of the cookies to fall apart and be discarded. Arley wants a 45% markup on cost and produces 200 cookies. What should Arley price each cookie?

Answer 1

Arley should price each cookie $ 2.56

Solution:

Arley’s Bakery makes fat-free cookies that cost $1.50 each

Arley expects 15% of the cookies to fall apart and be discarded

Total cookies = 200

Discarded = 15 % of 200

`Discarded = (15)/(100) * 200 = 30`

Now, remaining = 200 - 30 = 170

Good cookies = 170

Arley wants a 45% markup on cost

Total cost = 200 cookies x 1.50 = 300

45 % markup

Therefore,

cost = 300 + 45 % of 300

`cost = 300 + (45)/(100) * 300`

cost = 300 + 135 = 435

What should Arley price each cookie?

`Price\ per\ cookie = (435)/(170) = 2.56`

Thus Arley should price each cookie $ 2.56