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1 January, 16:16

Angie's Bake Shop makes birthday chocolate chip cookies that cost $3 each. Angie expects that 12% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 150 cookies. What should Angie price each cookie? (Round your answer to the nearest cent.)

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  1. 1 January, 16:39
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    Price per cookie $5.5

    Explanation:

    The cost per cookies inclusive of wastage

    $3 * 100 / (100-12)

    =$3.409

    Total cost for 150 units

    = 150 * 43.409

    = $511.36

    Total sales value for 150 units

    = $511.36 + (60% * 511.36)

    = $818.1818

    Selling price per unit

    =$818.18/150 units

    = $5.5
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