Question

Mary invested $20,000 to open a bakery business. The cost of making one muffin is $1. Assuming that the sales reach 1000 pieces, she wishes to earn 10% as a return on investment. What is the target return price of product?

The target return price will be $

Answer 1

Did you ever figure it out because I saw it was 2 bucks.

Step-by-step explanation:

Answer 2

The target return price will be $2

Step-by-step explanation:

From the information given,

For the muffin product:

The sales made = 1000

Cost for 1 muffin = $1

Therefore, total money made

No of sales X cost price =

1000 X $1 = $1000

The amount invested on the business = $20,000

She want to earn 10% on the investment =

10% of $20,000 = $2000

The target return price would be,

Return on investment / no of sales made

= $2000/ 1000 = $2