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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?

User Niquan
by
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1 Answer

2 votes

Answer:

Arley should charge $2.25 for each unbroken cookie.

Explanation:

1. This problem has a lot of information to take in. To make things easier, it's vital to condense the problem into the most vital information.

Normal Price (x) = $1.50

Markup = %50 (1.5)

Total Price = 1.5x

Note that the amount of cookies produced and the amount charged for the broken cookie was not written in this condensed format.

The question was only: What price should Arley charge for each unbroken cookie?

Neither the cookies produced or the amount charged were part of the question. In this case, the other information is simply there as a filler.

2. With the information given, a simple formula should be created to find the total price.

The formula for this problem is: 1.5x

As stated above, 1.5 represents the 50% markup while the variable (x) represents the normal price.

When 1.5*1.5 is solved, it comes out to $2.25 dollars.

3. The answer is $2.25 dollars for each unbroken cookie.

User Brayne
by
3.2k points