Angie's bake shop makes birthday chocolate chip cookies that cost $2 each. angie expects that 10% of the cookies will crack and be discarded. angie wants a 60% markup on cost and produces 100 cookies. what should angie price each cookie? (round your answer to the nearest cent.)

Angie expects to sell 90 cookies, discarding 10 of them for being cracked. These cookies will cost her $200 to produce. A 60% markup would be $120, so she wants to make a total of $320 on each of 90 cookies. She should charge $320/90 = $3.56 per cookie.

The first thing to do is to know how many cookies Angie needs to produce knowing that 10% of her production is going to crack.

To produce 100 cookies, Angie must:

90% - - - > 100

100% - - - > x

Clearing x:

x = (100/90) * (100)

x = 111.1111111

Angie must make 111 cookies.

Each cookie costs $ 2

We have then:

(111.11) * (2) = 222.22 $

As only 100 cookies are sold (the rest is broken):

222.22 / 100 = 2.22 $

Each cookie costs 2.22 $

As Angie wants a 60% profit then:

2.22 * 1.6 = 3.56 $

Answer:

angie should price 3.56 $ each cookie