cookies that cost $2 each. expects 10% to crack.wants a 60% markup on cost and produces 100 cookies. what should they price each cookie? round to the nearest ce

Question

angies bakeshop makes birthday chocolate chip cookies that cost $2 each. angie expects 10% to crack and be discarded. angie wants a 60 % markup on cost and produces 100 cookies. what should angie price each cookie? round to the nearest cent.

Answer 1

To calculate the price of each cookie, Angie needs to first determine the cost of producing each cookie.

Cost of production per cookie = $2/cookie * 110% = $2.20/cookie

Angie wants a 60% markup on cost, so she needs to add 60% to the cost of production to get the selling price.

Selling price per cookie = $2.20/cookie * 160% = $3.52/cookie

Therefore, Angie should price each cookie at $3.52.

Calculation rounded to the nearest cent:

Selling price per cookie = $3.519

Since Angie is pricing her cookies to the nearest cent, she should round up to $3.52.